Johnson & Johnson (NYSE: JNJ) shares began Monday higher in price. The pharmaceutical giant announced today that it has entered into a definitive agreement to acquire Halda Therapeutics OpCo, Inc., a clinical-stage biotechnology company with a proprietary Regulated Induced Proximity TArgeting Chimera (RIPTAC™) platform to develop oral, targeted therapies for multiple types of solid tumors, including prostate cancer, for $3.05 billion in cash.
This morning’s news release goes on to say the transaction is expected to close within the next few months, subject to antitrust clearance and other customary closing conditions.
The lead candidate, HLD-0915, is a clinical-stage therapy for prostate cancer, of which new diagnoses are projected to reach 1.7 million globally by 2030. Given the existing unmet need, this once-daily therapy has the potential to transform patient outcomes with its novel precision cancer cell-killing approach that can overcome mechanisms of resistance to treatment.
“This acquisition further strengthens our deep oncology pipeline with an exciting lead asset in prostate cancer and a platform capable of treating multiple cancers and diseases beyond oncology, providing a potential mid- and long-term catalyst for growth,” said Executive Vice President Jennifer Taubert. “We look forward to combining Halda’s pipeline, platform and people with our world class R&D, commercial and manufacturing capabilities and advancing our goal of bringing these therapies to patients around the world.”
JNJ shares jumped $3.44, or 1.8%, to $199.37.
