Johnson & Johnson to Acquire Ambrx Biopharma in $2 Billion Deal
Johnson & Johnson announced on Monday that it will acquire Ambrx Biopharma, a drugmaker specializing in antibody-drug conjugates (ADCs), for $2 billion in cash.
ADCs are described by researchers as “guided missiles” that target and kill cancer cells while minimizing damage to healthy tissue. Ambrx aims to use ADCs to target multiple cancers.
This acquisition aligns with J&J’s strategy to invest in the growing field of ADCs, following similar moves by other large drugmakers like Pfizer, AbbVie, and Merck.
Additionally, the deal comes as J&J seeks to fill a revenue gap expected in 2025 when its top-selling drug Stelara faces generic competition.
Dr. Yusri Elsayed, J&J’s global therapeutic area head of oncology, expressed excitement about Ambrx’s pipeline and ADC platform, stating that they present future opportunities to transform cancer treatment and improve patients’ lives.
Under the terms of the deal, J&J will pay $28 per share for Ambrx, which is double the firm’s closing price on Friday. The acquisition is expected to close in the first half of 2024.
Shares of Ambrx nearly doubled in early trading following the announcement, while J&J’s stock remained flat.
