An entrance sign to the Johnson & Johnson campus displays its logo in Irvine, California, on August 28, 2019.
Marcos Ralston | AFP | fake images
Johnson and Johnson on Monday it said it will pay $2 billion in cash to acquire Ambrx Biopharmacya drug manufacturer specializing in one of the hottest areas of cancer treatment.
Ambrx aims to target multiple cancers with drugs called antibody-drug conjugates, or ADCs, which researchers describe as “guided missiles” to directly target and kill cancer cells and minimize damage to healthy tissue.
The deal, which was announced on the first day of JPMorgan Healthcare’s annual conference, makes J&J the latest drugmaker to bet on ADCs, following similar moves by other big drugmakers, including Pfizer, Abvie and merck – During the past year.
The acquisition also comes as J&J struggles to plug a revenue hole heading into 2025, when its best-selling drug Stelara, used to treat a long-standing autoimmune disease called psoriasis, is expected to face generic competition.
“Ambrx’s pipeline and ADC platform present exciting future opportunities to deliver improved, precision biologics as we seek to transform cancer treatment and improve patients’ lives,” Dr. Yusri Elsayed, head of the area, said in a statement. J&J global oncology therapeutics.
Under the terms of the deal, J&J will pay $28 per Ambrx share, or about double the company’s Friday closing price of $13.63. J&J expects to close the deal in the first half of 2024.
Ambrx shares nearly doubled in early trading Monday to just below that purchase price, while J&J shares held steady.
