J&J Buys 18% Stake in Biotech Firm Crucell

Editor's note: Biotech expert Adam Feuerstein will be the featured guest on TSC Live at noon EDT Tuesday, Sept. 29. Email your questions at [e-mail]; tweet us on Twitter with hash tag #tsclive; leave a message on our Facebook page; or use the live show page's comments section. Bookmark the TSC Live page now.

NEW BRUNSWICK, N.J. (TheStreet) -- Johnson & Johnson (JNJ Quote) has purchased 14.6 million shares of Crucell(CRXL Quote), or 18% of the Dutch biotechnology company, for 301.8 million euros ($441 million) under a partnership to develop flu vaccines.

J&J said the immediate focus of the collaboration will be to develop and commercialize a universal monoclonal antibody product (flu-mAb) for treating and preventing flu. The companies also will work to develop vaccines for other infectious and non-infectious diseases.

The companies also have agreed to development milestones and royalty payments based on the successful development and commercialization of products.

Under the flu-mAb collaboration, J&J's Ortho-McNeil-Janssen Pharmaceuticals division and Crucell will seek to develop a universal flu-mAb product targeting all influenza A strains, which cause seasonal flu and the current pandemic including H1N1 strains, and the bird flu strain.

J&J said the transaction is expected to dilute 2009 adjusted earnings by 2 cents to 4 cents a share.

-- Reported by Joseph Woelfel in New York .

Follow TheStreet.com on Twitter and become a fan on Facebook.