Johnson & Johnson to Buy Momenta for $6.5 billion

Johnson & Johnson entered into a definitive agreement to acquire Momenta Pharmaceuticals for $52.50 per share in cash, or approximately $6.5 billion, expanding its portfolio into autoantibody-driven autoimmune diseases. The transaction, which represents a premium of 70% to Momenta’s closing share price on August 18, includes full global rights to Momenta’s anti-FcRn antibody nipocalimab, as well as the company’s pipeline of clinical and preclinical assets.

According to Johnson & Johnson, the acquisition was driven by “the significant opportunity seen in nipocalimab, along with the scientific capability…[of] the Momenta team.” Johnson & Johnson noted that nipocalimab, which recently received a rare paediatric disease designation from the FDA, gives it the opportunity to pursue indications across many autoimmune diseases, including maternal-fetal disorders, neuro-inflammatory disorders, rheumatology, dermatology and autoimmune haematology.

Catalyst for growth

Jennifer Taubert, worldwide chairman of pharmaceuticals at Johnson & Johnson, said the deal broadens its “leadership in autoimmune diseases and provides us with a major catalyst for sustained growth.” The company added that it expects nipocalimab to contribute to its goals of achieving above-market growth over the mid and long term, with some potential indications for the drug predicted to lead to sales exceeding $1 billion.

Johnson & Johnson said that it plans to retain Momenta’s presence in Cambridge, Massachusetts. The drugmaker indicated that investment in R&D associated with the purchase is expected to have an earnings per share impact worth approximately $0.10 to $0.15 in 2021.