J&J Buying Peninsula

The closely held biopharma has a new antibiotic.
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Johnson & Johnson

(JNJ) - Get Report

agreed Tuesday to acquire closely held biopharma Peninsula Pharmaceuticals for $245 million in cash.

Peninsula focuses on developing and commercializing antibiotics to treat life-threatening infections. New Jersey-based J&J will take an 8-cent-a-share charge at closing, which is expected in the second quarter.

J&J said Peninsula's lead product candidate, doripenem, is a broad-spectrum antibiotic and a new member of the carbapenem class of beta-lactam antibiotics.

The news comes as J&J is due to post first-quarter numbers. Analysts surveyed by Thomson First Call expect first-quarter earnings of 92 cents a share on revenue of $12.5 billion, up from 83 cents on $11.5 billion a year earlier.

J&J closed Tuesday at $69.04.