J&J Takes Momenta for $6.5 Billion
Johnson & Johnson has agreed to acquire autoimmune disease specialist Momenta Pharmaceuticals in an all-cash transaction of about $6.5 billion. Both companies’ boards of directors have unanimously approved the transaction set to close in the second half of 2020, subject to antitrust approvals and customary conditions.
The deal, said J&J, was driven by the significant opportunity it sees in Momenta’s lead asset, nipocalimab, a clinically validated, potentially best-in-class anti-FcRn antibody. With Nipocalimab J&J’s Janssen Pharmaceutical division gains the opportunity to pursue indications across several autoimmune diseases with substantial unmet need in maternal-fetal disorders, neuro-inflammatory disorders, rheumatology, dermatology and autoimmune hematology.
Potentially, Janssen could introduce multiple launches – many as first-in-class indications capable of achieving significant peak year sales, some of which could exceed $1 billion.
In July, nipocalimab received a rare pediatric disease designation from the US Food and Drug Administration (FDA) for preventing hemolytic disease of the fetus and newborn (HDFN). At the same time, the agency also granted nipocalimab orphan drug designation in HDFN, a serious blood disorder that occurs when red blood cell incompatibility occurs between the mother and fetus in utero.
As well as nipocalimab, J&J gets Momenta’s pipeline of clinical and pre-clinical assets. The US-based multinational said plans for the additional assets will be determined as more data becomes available, adding that they could offer further upside potential.
“This acquisition broadens Janssen’s leadership in autoimmune diseases and provides us with a major catalyst for sustained growth. Autoantibody-driven diseases are often serious, and patients are underserved by current treatment options,” said Jennifer Taubert, executive vice president, worldwide chairman, pharmaceuticas, at J&J. The healthcare giant plans to retain Momenta’s site in Cambridge, Massachusetts.
Speaking to Reuters, Thomas Shrader, an analyst with financial services group BTIG, said the deal was “modestly surprising as we see every one of Momenta’s assets as somewhat tricky to develop.”
Author: Elaine Burridge, Freelance Journalist
