Momenta Pharmaceuticals (MNTA) surges 70% on buyout by Johnson & Johnson (JNJ)

Shares of Momenta Pharmaceuticals (MNTA) rocketed 69% into record territory in premarket trading Wednesday, after the biotechnology company announced an agreement to be acquired by Johnson & Johnson (JNJ) in a deal valued at $6.5 billion.

  • Johnson & Johnson to acquire Momenta for $52.50 per share in cash, representing a total equity value of $6.5 billion and a 70% premium to Momenta’s closing price on August 18, 2020
  • Momenta’s FcRn inhibitor, nipocalimab, has the potential to transform treatment of autoantibody-driven autoimmune diseases
  • Transaction expected to be completed in the second half of 2020

Under terms of the deal, J&J will pay $52.50 for each Momenta share outstanding, representing a 70.4% premium to Tuesday’s closing price of $30.81. J&J’s stock gained 0.2% ahead of the open. The deal is expected to close in the second half of 2020.

J&J said the acquisition provides its Janssen Pharmaceuticals business an opportunity to broaden its leadership in immune-mediated diseases and expand into the autoantibody-driven disease business. The deal includes full global rights to Momenta’s nipocalimab, a clinically validated anti-FcRn antibody, which allows Janssen to reach more patients by pursuing indications across many autoimmune diseases.

Momenta’s stock has soared 56.2% year to date through Tuesday, while J&J shares have gained 2.9% and the S&P 500 has advanced 4.9%.

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Jay Lorrence
Jay Lorrence

Investor of 12 years and Managing Editor of Money Midnight, a news outlet focused on highly profitable investment ideas and bold underground research.

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