Jim Cramer Says Johnson & Johnson Is 'Boosting Its Drug Pipeline'
Johnson & Johnson will buy Momenta for roughly $6.5 billion in cash, paving the way for the company to expand its efforts into autoimmune disease treatments.
J&J will pay $52.50 for each Momenta share, the company said in a statement, a 70.4% premium to Momenta's closing price Tuesday.
Momenta will become part of J&J’s Janssen Pharmaceutical unit, the companies said, with Janssen acquiring Momenta’s pipeline of clinical assets. Janssen plans to retain Momenta's presence in Cambridge, Massachusetts.
"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," said Jennifer Taubert, executive vice president, worldwide chairman, pharmaceuticals, Johnson & Johnson.
The deal is expected to close in the second half of 2020. While the deal is expected to have a per-share impact of approximately 10 to 15 cents in 2021, J&J said costs related to the development of Momenta’s portfolio are expected to be “incremental.”
So what does Jim Cramer think?
Watch the video above for more.