Shares of Momenta Pharmaceuticals (NASDAQ:MNTA) have skyrocketed in Wednesday premarket trading after the company announced it has entered into an agreement for Johnson & Johnson (NYSE:JNJ) to acquire the company.
The announcement has seen Momenta shares surge to $52.70, a 71.05% move higher after yesterdays close of $30.81.
“The agreement with J&J recognizes the value created by years of commitment and dedication to our mission by the many current and past Momenta employees.
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“Programs such as nipocalimab have the potential to improve the lives of countless patients suffering from autoimmune and fetal-maternal diseases,” said Craig Wheeler, President and Chief Executive Officer of Momenta.
Johnson & Johnson will pay $52.50 per share in cash to acquire Momenta, which represents a total equity value of $6.5 billion and a premium of 70% on Momenta’s closing price yesterday.
In its press release, Momenta said that they expect the deal to close in the second half of 2020.
Johnson & Johnson said that the acquisition will allow the opportunity for its Janssen Pharmaceuticals business to broaden its leadership in immune-mediated diseases and expand into other markets.
Janssen will acquire momenta’s employees and lead asset nipocalimab as well as its clinical and pre-clinical assets.
“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, Pharmaceuticals, Johnson & Johnson.
