Johnson & Johnson announced on Monday that it will spend $2 billion in cash to acquire Ambrx Biopharma, a drugmaker focused on one of the most promising areas of cancer treatment.
- IMPORTANT NOTES
- Johnson & Johnson announced a $2 billion acquisition of Ambrx Biopharma, a drugmaker focusing on one of the hottest areas of cancer treatment.
- The agreement, announced on the first day of the annual JPMorgan Healthcare Conference, makes J&J the latest pharmaceutical company to place a bet on antibody-drug conjugates, or ADCs.
- The deal also comes as J&J scrambles to close a revenue gap that will open in 2025.
Ambrx intends to target numerous tumors with antibody-drug conjugates, or ADCs, which experts characterize as “guided missiles” that directly target and kill cancer cells while causing minimal damage to healthy tissue.
The agreement, announced on the first day of the annual JPMorgan Healthcare Conference, makes J&J the latest large drugmaker to bet on ADCs, after similar moves by Pfizer, AbbVie, and Merck over the previous year.
The acquisition also comes as J&J scrambles to cover a revenue gap that is likely to emerge in 2025, when its top-selling medicine, Stelara, which is used to treat a chronic autoimmune disease known as psoriasis, is expected to face generic competition.
“Ambrx’s pipeline and ADC platform present exciting future opportunities to deliver enhanced, precision biologics as we look to transform cancer treatment and improve patients’ lives,” J&J’s global therapeutic area head of oncology, Dr. Yusri Elsayed, said in a release.
J&J will pay $28 per share for Ambrx, which will roughly quadruple the firm’s Friday closing price of $13.63. J&J plans to complete the transaction in the first half of 2024. In early trading Monday, Ambrx shares nearly doubled to just about that purchase price, while J&J stock was flat.
Frequently asked question
What is the new drug development for cancer?
The antibiotic novobiocin showed promise in laboratory experiments as a therapy for malignancies resistant to PARP inhibitors. The medication, which inhibits a protein called DNA polymerase theta, will be studied in clinical trials funded by the NCI.
What is Johnson & Johnson cancer treatment?
Talvey’s therapy belongs to a class of medicines known as bispecific antibodies, which are designed to bring together a cancer cell and an immune cell so that the body’s immune system can eliminate the cancer.
What are the new cancer drugs in 2023?
Patients stood to benefit significantly from a slew of new cancer therapeutics approved by the US Food and Drug Administration (FDA) in 2023, most notably momelotinib (Ojjaara), a JAK inhibitor that became the first treatment indicated for anemia associated with myelofibrosis, a rare type of blood cancer.
What is the most successful cancer drug?
Top-selling cancer drugs | 2022 | 2023 | Best cancer products | iPharmaCenter
- Keytruda. Revenues: $20.9 billion.
- Revlimid. Revenues: $10 billion.
- Imbruvica. Revenues: $8.1 billion.
- Darzalex. Revenues: $8.0 billion.
- Opdivo. Revenues: $8.2 billion.
- Tagrisso. Revenues: $5.5 billion.
- Ibrance. Revenues: $5.1 billion.
- Perjeta.
What drug made cancer vanish?
According to the New York Times, in a tiny clinical trial, 18 patients took a medicine called Dostarlimab for around six months and saw their tumors shrink at the end. Dostarlimab is a medication that contains laboratory-created molecules that behave as substitute antibodies in the human body.
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