Johnson & Johnson acquires Momenta for $6.5 billion to develop new treatments

Johnson & Johnson announced that it has reached a final agreement to acquire Momenta, a company dedicated to the discovery and development of new therapies for immune-mediated diseases, in an all-cash transaction of approximately US$6.5 billion. According to the terms of the transaction approved by the boards of directors of the two companies, Vigor Sub, a newly established wholly-owned subsidiary of Johnson & Johnson, will begin the tender offer. The transaction is expected to be completed in the second half of 2020.

The acquisition will allow Johnson & Johnson's Janssen Pharmaceuticals (Janssen) to expand its leadership in immune-mediated diseases. This transaction will include all global rights to nipocalimab (M281), which is a clinically proven, possibly best-in-class anti-FCRn antibody. Janssen has the opportunity to promote the development of nipocalimab in a variety of autoimmune diseases, including maternal and fetal diseases, neuroinflammatory diseases, rheumatism, dermatology, and autoimmune blood diseases. There are currently a large number of unmet medical needs. Nipocalimab has recently obtained orphan drug designation from the US FDA. In addition to Momenta's employees and main asset nipocalimab, Janssen will also acquire Momenta's clinical and preclinical assets.

Autoimmune diseases partially or fully driven by autoantibodies represent a new field in which Janssen can significantly improve the health of patients. In autoantibody-driven diseases, the body's antibodies will attack or destroy its own proteins, cells, and tissues, usually with devastating consequences. Autoantibody-driven diseases include myasthenia gravis, hemolytic diseases of the fetus and newborns, warm antibody-type autoimmune hemolytic anemia, and other serious skin diseases, rheumatism, neurological diseases, blood diseases and kidney diseases. It is estimated that 2.5% of the global population, about 195 million people, suffer from some form of autoantibody-driven disease, many of which are rare diseases.