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Johnson & Johnson To Buy Momenta In Billion Dollar Deal

Johnson & Johnson said on Wednesday it would buy Momenta Pharmaceuticals Inc for about $6.5 billion in cash to bolster its portfolio of treatments for autoimmune diseases.

Momenta shares were up 68% at $51.98 before the bell, just shy of the offer price of $52.20.

The deal gives Johnson & Johnson's Janssen unit access to Momenta's experimental therapy, nipocalimab, being tested for myasthenia gravis, a neuromuscular disease that causes weakness in muscles.

"Nipocalimab gives Janssen the opportunity to reach significantly more patients by pursuing indications across many autoimmune diseases," Johnson & Johnson said in a statement.

The drug is being developed to treat diseases where the body's own antibodies attack or damage proteins and cells.

J&J reiterated its 2020 adjusted earnings per share forecast and said it expected the deal to close in the second half of 2020.

News by Reuters edited by Checkout. Click subscribe to sign up for the Checkout print edition.

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