Johnson & Johnson to acquire Momenta over $6.5 billion buyout deal

On Wednesday, Johnson & Johnson (JNJ.N) announced that it would acquire Momenta Pharmaceuticals Inc (MNTA.O) in a buyout deal worth $6.5 billion.

The medical device company said that the acquisition deal would broaden its leadership in immune-mediated diseases and drive further growth.

According to Johnson & Johnson, its company would have access to Momenta’s experimental therapy called Nipocalimab.

“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. Programs such as Nipocalimab have the potential to improve the lives of countless patients suffering from autoimmune and fetal-maternal diseases,” Momenta’s President and Chief Executive Officer Craig Wheeler said.

“This acquisition provides strong value for our shareholders and ensures a level of investment in our exciting portfolio that will further enhance its potential for patients. I believe J&J is the right company to advance our portfolio of novel drug candidates for autoimmune and rare diseases. J&J’s leadership in immunology, extensive capabilities, and global reach, as well as its alignment with our vision of pioneering therapies for complex diseases, is a strong fit for our company and our portfolio,” he added.

Momenta’s shares went up by 68% at $51.98 in the afternoon trading.