Johnson & Johnson ( JNJ) announced this morning that it has completed its nearly $894 million bid to buy Los Angeles-based Cougar Biotechnology. The transaction furthers Johnson & Johnson's move into the cancer-drug market. Cougar Biotech, which was founded in 2003, is best known for its late-stage, experimental prostate cancer offering. The drug, known as abiraterone acetate, is currently in phase III trials. "Abiraterone acetate now becomes one of many new treatments we are developing, which we hope will change the course of cancer treatment by targeting cancer cells and the tumor micro-environment," Dr. William Hait, Ortho Biotech's global oncology head, said in a press release. Regulators and Cougar Biotech's board approved the cash-tender deal in June. The tender closed yesterday and Johnson and Johnson said in a press release today that nearly 96% of Cougar shares, or around 20.1 million, were tendered. With the deal completed, Cougar Biotech will now work as a unit of the world's largest healthcare conglomerate, while teaming with Johnson & Johnson's Ortho Biotech Oncology Research & Development. The deal was originally announced in late May. Before that, OncoGenex Pharmaceuticals ( OGXI)
announced promising phase II results for its own prostate drug, called OGX-11. Shares of Johnson & Johnson soared early in the morning, but retained only a 0.2%, or 10 cents, gain to $56.79 by early afternoon.