Why Momenta Pharmaceuticals Stock Rocketed 69% Higher Today
Shares of Momenta Pharmaceuticals (NASDAQ: MNTA) soared on Wednesday after the biotechnology company announced it had agreed to be acquired by Johnson & Johnson (NYSE: JNJ). As of 1:40 p.m. EDT, Momenta's stock was up 69%.
The all-cash deal values Momenta at $6.5 billion, or $52.50 per share -- a 70% premium to its stock's closing price on Aug. 18. In return, J&J would receive full global rights to Momenta's experimental antibody, nipocalimab, which could potentially be used to treat a number of autoimmune diseases. J&J would also obtain Momenta's pipeline of clinical and pre-clinical assets.
JNJ believes that sales for nipocalimab alone could eventually exceed $1 billion annually.
Source Fool.com
