Shares of Momenta Pharmaceuticals Inc. MNTA, +5.04% rocketed 69% into record territory in premarket trading Wednesday, after the biotechnology company announced an agreement to be acquired by Johnson & Johnson JNJ, +0.73% in a deal valued at $6.5 billion.
Under terms of the deal, J&J will pay $52.50 for each Momenta share outstanding, representing a 70.4% premium to Tuesday’s closing price of $30.81. J&J’s stock gained 0.2% ahead of the open.
The deal is expected to close in the second half of 2020. J&J said the acquisition provides its Janssen Pharmaceuticals business an opportunity to broaden its leadership in immune-mediated diseases and expand into the autoantibody-driven disease business.
The deal includes full global rights to Momenta’s nipocalimab, a clinically validated anti-FcRn antibody, which allows Janssen to reach more patients by pursuing indications across many autoimmune diseases.
Momenta’s stock has soared 56.2% year to date through Tuesday, while J&J shares have gained 2.9% and the S&P 500 SPX, +0.23% has advanced 4.9%.