Johnson & Johnson Snaps Up Momenta Pharmaceuticals

Johnson & Johnson CEO Alex Gorsky.

Photo credit: Stuart Isett/Fortune, under Creative Commons license

Johnson & Johnson, the healthcare and medical devices multinational, has reached a deal to acquire Momenta Pharmaceuticals, a biotechnology company that focuses on treatments for immune-related diseases, for a total of $6.5 billion, representing a 70% premium price to Momenta's closing price the day before a deal was reached. The acquisition has been approved by board members at both companies and is expected to be completed in the second half of this year.

It marks one of the largest acquisitions ever in the general biotech sector and also for Johnson & Johnson, which is, however, not new to making such big acquisitions. In the past, the company has doled out billions of dollars for a handful of companies, including as much as $30 billion for its landmark purchase of Actelion Pharmaceuticals that was completed in 2017.