Johnson & Johnson Buys Ambrx Biopharma In $2 Bln Cash Deal

(RTTNews) - Drug major Johnson & Johnson (JNJ) announced Thursday that it has completed the acquisition of Ambrx Biopharma, Inc. in an all-cash merger deal for a total equity value of around $2.0 billion, or $1.9 billion net of estimated cash acquired.

The transaction will be accounted for as a business combination.

Ambrx Biopharma is a clinical-stage biopharmaceutical company with a proprietary synthetic biology technology platform to design and develop next-generation antibody drug conjugates or ADCs.

The acquisition would help Johnson & Johnson to design, develop and commercialize targeted oncology therapeutics.

According to the firm, Ambrx's proprietary ADC technology incorporates the advantages of highly specific targeting monoclonal antibodies securely linked to a potent chemotherapeutic payload to achieve targeted and efficient elimination of cancer cells without the prevalent side effects typically associated with chemotherapy.

Yusri Elsayed, Global Therapeutic Area Head, Oncology, Johnson & Johnson Innovative Medicine, said, "We look forward to continuing the development of ARX517, which represents a potential first- and best-in-class PSMA-targeting ADC for the treatment of metastatic castration-resistant prostate cancer. This significant opportunity sets the stage for advancing next generation ADCs with the aim of delivering differentiated solid tumor therapies that improve patients' lives."