Johnson & Johnson said Wednesday it’s scooping up Momenta, a biotecompany ch that is working on treatment for rare autoimmune diseases. J&J (JNJ) is paying $6.5 billion in cash, or $52.50 a share, for Momenta (MNTA). Momenta’s stock soared nearly 70% in early trading on the news,
The acquisition comes at a time when many Big Pharma and biotech firms are racing to develop a vaccine for Covid-19. But this deal shows that there is also still a need to work on treatments for other disorders.
The merger was announced just two days after J&J’s European rival Sanofi (SNY) said it was buying Principia Biopharma (PRNB), a company working on a treatment for multiple sclerosis, for $3.7 billion.
J&J said the acquisition will bolster its Janssen Pharmaceuticals unit, giving it access to Momenta’s nipocalimab treatment for rare disorders like myasthenia gravis, a neuromuscular disease.
“Autoantibody-driven diseases% n serious, and patients are underserved by current treatment options,” said Jennifer Taubert, J&J’s executive vice president and worldwide chairman, in a statement.
J&J pointed out that about 2.5 percent of the world’s population, or approximately 195 million people, suffer from an autoantibody-driven disease, and many of them are considered rare or orphan diseases.