Key Takeaways
- Johnson & Johnson said Monday that it bought Ambrx Biopharma for about $2 billion to boost its oncology portfolio.
- The $28-per-share all-cash offer is at a 105% premium to Ambrx’s closing price on Friday.
- Ambrx’s clinical and preclinical treatments use antibody drug coagulates to attack a variety of cancer cells.
- Ambrx shares more than doubled following the news, hitting an all-time high.
Ambrx Biopharma Inc. (AMAM) shares more than doubled Monday on news that Johnson & Johnson (J&J) (JNJ) would purchase the biotechnology firm to add to its cancer-fighting drug portfolio.
J&J said it would pay approximately $2 billion in cash for Ambrx, or $28 per share. That would be a 105% premium to the stock’s closing price on Friday.
The company said that Ambrx has several clinical and preclinical programs underway that use antibody drug coagulates (ADC) to kill a variety of cancer cells. Those include ARX517 for patients with metastatic castration-resistant prostate cancer, ARX788 for those with metastatic HER2+ breast cancer, and ARX305 for those suffering from renal cell carcinoma.
J&J said the deal “presents a distinct opportunity for Johnson & Johnson to design, develop, and commercialize targeted oncology therapeutics.”
Ambrx added that it expects the transaction will close in the first half of this year if approved by Ambrx’s shareholders and regulators.
Shares of Ambrix Biopharma were up 102% at $27.56 in afternoon trading, after hitting a record high of $27.60 during the session. Johnson & Johnson was down 0.3%.
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