Johnson & Johnson to buy Momenta for around $ 6.5 billion



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Johnson & Johnson said on Wednesday it would buy Momenta Pharmaceuticals for around $ 6.5 billion in cash to bolster its portfolio of autoimmune disease treatments.

Momenta shares rose 68% to $ 51.98 before the bell, just below the offer price of $ 52.20.

The agreement gives Johnson & Johnson’s Janssen unit access to Momenta’s experimental treatment, nipocalimab, being tested for myasthenia gravis, a neuromuscular disease that causes muscle weakness.

“Nipocalimab gives Janssen the opportunity to reach larger numbers of patients by pursuing indications for many autoimmune diseases,” Johnson & Johnson said in a statement.

The drug is being developed to treat conditions where the body’s own antibodies attack or damage proteins and cells.

J&J reiterated its guidance for adjusted earnings per share for 2020 and said it expected the deal to be completed in the second half of 2020.

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