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2020-08-22 11:45

Johnson & Johnson said on Friday that it plans on buying Momenta Pharmaceuticals. Following the acquisition, Momenta’s Nipocalimab that is used in the patients of Myasthenia Gravis will come under J&J’s umbrella. Sources confirmed on Friday that the all-cash deal is, that is likely to be completed later this year, is valued at $6.5 billion. J&J’s subsidiary, Janssen, will also gain access to other treatments on Momenta’s portfolio for autoimmune diseases following the completion of the transaction.

Johnson & Johnson’s executive president, Jennifer Taubert, commented on the news on Friday and said:

“This acquisition broadens Janssen’s leadership in autoimmune diseases and provides us with a major catalyst for sustained growth. We’re excited by the opportunity to further advance patient care by combining Johnson & Johnson world-class R&D, commercial and supply chain capabilities with Momenta’s talented people, pipeline, and deep expertise in this important area.”

J&J to enroll 60,000 participants in the late-stage trial for its COVID-19 vaccine

According to Momenta, research showed Nipocalimab as effective in making the disease less severe in over 52% of the patients. The drug helps minimise MG autoantibodies levels in the blood. Nipocalimab was also announced well-tolerated and safe to use in MG patients with no amount of significant side effects.

Janssen hinted at plans of sustaining operations in Cambridge at Momenta’s headquarters. Taking over the facility, J&J wishes to expand its footprint in the greater Boston area. Johnson & Johnson is one of the companies that is currently committed to developing an effective vaccine against COVID-19 that has so far infected more than 23 million people worldwide and caused over 0.8 million deaths.

The American multinational corporation revealed on Friday that the phase 3 trial for its experimental COVID-19 drug will start in September and will enroll as many as 60,000 participants. Its top two competitors, Pfizer and Moderna, on the other hand, are seeking half as much participation for the late-stage trial of their candidate COVID-99 vaccine.

Johnson & Johnson published its Q2 earnings report in July
Johnson & Johnson published its earnings report for the fiscal second quarter in July that highlighted its profit to have slid 35% on the back of the ongoing health crisis that delayed elective surgeries.

J&J, however, topped experts’ forecast for earnings and revenue in the second quarter. The New Brunswick-based company posted $19 billion in revenue and $1.74 of adjusted EPS (earnings per share). Analysts had anticipated the company to print a lower $1.56 of earnings per share on revenue of $18.30 billion in the recent quarter. Johnson & Johnson closed the week at $153.45 per share on Friday. On a year to date basis, shares of the company are currently about 5% up in the stock market. At the peak of COVID-19, J&J had sunk to as low as $112 per share in March.

Its performance was also reported upbeat in the stock market last year with an annual gain of roughly 15%. At the time of writing, Johnson & Johnson has a market cap of $402 billion and a price to earnings ratio of 26.86.