(Nov 17): Johnson & Johnson has agreed to buy the cancer treatment biotech Halda Therapeutics for US$3.05 billion ($3.9 billion) cash, part of a strategy to cope with eroding sales for its major psoriasis drug.
Halda is testing a therapy for prostate cancer. The biotech is also testing drugs for breast, lung and multiple other tumor types, J&J said in a statement announcing the transaction Monday.
Johnson & Johnson shares were little changed as of 8:15am before regular trading in New York.
J&J’s top-selling psoriasis drug Stelara is facing biosimilar competition after key patents expired. It expects some newer medicines for multiple myeloma and psoriasis to help fill the gap.
The transaction is one of a spate of deals in the pharma industry lately, as drug companies look to replenish their pipelines. Pfizer Inc beat out Novo Nordisk A/S in a very public bidding war for obesity biotech Metsera Inc. Last week, Merck & Co agreed to acquire flu treatment maker Cidara Therapeutics Inc for up to US$9.2 billion.
In October, J&J also said announced plans to separate its slower-growing orthopedics business from the rest of the company within 18 to 24 months.
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