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Johnson & Johnson (NYSE: JNJ) announced its decision to acquire Momenta Pharmaceuticals (NASDA: MNTA) for $6.5 billion in an all-cash transaction.

Momenta Pharmaceuticals is a biotechnology company focused on discovering and developing novel treatments for rare, immune-mediated diseases.

On Wednesday, Johnson & Johnson entered into a definitive agreement to acquire Momenta, which was unanimously approved by the Board of Directors of both companies.

Expanding Janssen's leadership in novel treatments for autoimmune diseases

The multinational corporation believes that acquiring the biotechnology company will help expand its subsidiary, Janssen Pharmaceutical Companies’ leadership in novel treatments for autoimmune diseases.

The transaction includes full global rights to nipocalimab (M281), a clinically validated, potentially best-in-class anti-FcRn antibody. Nipocalimab will give Janssen an opportunity to reach more patients by pursuing indications across many autoimmune diseases with substantial unmedical need including maternal-fetal disorders, neuro-inflammatory disorders, etc.

The U.S. Food and Drug Administration (FDA) recently granted the pediatric disease designation for nipocalimab. Janssen is expecting that nipocalimab to contribute to its goal of achieving above-market growth.

In a statement, Johnson & Johnson’s Executive Vice President Jennifer Taubert said, "This acquisition broadens Janssen's leadership in autoimmune diseases and provides us with a major catalyst for sustained growth. Autoantibody-driven diseases are often serious, and patients are underserved by current treatment options. "

On the other hand, Momenta President and CEO Craig Wheeler said, "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.”

Wheeler added that the transaction provides strong value for Momenta’s shareholders. He believes that Johnson & Johnson is a “strong fit for Momenta because both companies’ have a similar vision of pioneering therapies for complex diseases

The companies are expected to complete the transaction in the second half of this year, pending the satisfaction of all conditions to the completion of the tender offer and merger.

Janssen plans to maintain Momenta’s presence in Cambridge, Massachusetts.

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