Momenta Pharmaceuticals (NASDAQ:MNTA) news for Wednesday includes a deal with Johnson & Johnson (NYSE:JNJ) sending MNTA stock rocketing higher.
Momenta Pharmaceuticals has announced a definitive agreement that has Johnson & Johnson acquiring the company for $6.5 billion. JNJ is offering $52.50 per share for MNTA stock. That’s a 70% premium over the stock’s closing price on Tuesday.
A wholly-owned subsidiary of Johnson & Johnson created for the agreement will be acquiring all outstanding shares of MNTA stock. Following this, JNJ will complete its merger with Momenta Pharmaceuticals by acquiring any shares of MNTA stock not bought in the tender offer.
Craig Wheeler, president and CEO of Momenta Pharmaceuticals, said this in the news release.
“This acquisition provides strong value for our shareholders and ensures a level of investment in our exciting portfolio that will further enhance its potential for patients. I believe J&J is the right company to advance our portfolio of novel drug candidates for autoimmune and rare diseases.”
The Momenta Pharmaceuticals new release notes that the deal has the full support from both companies’ Boards of Directors. The deal still needs to complete other customary closing conditions before it can close. That includes getting approval from regulators, as well as from MNTA shareholders. So long as there are no issues, the two companies expect the deal to close during the second half of 2020.
MNTA stock was up 69.2% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
