Under the terms of the deal, Johnson & Johnson will acquire Momenta for $52.50 per share in cash, representing a total equity value of $6.5 billion and a 70% premium to Tuesday’s closing price.
The deal offers incredible premiums of 62.0% and 89.2% to Momenta’s 50-day and 200-day moving averages of $32.40 and $27.75, respectively.
The transaction is expected to be completed in the second half of 2020, pending customary closing conditions and regulatory approval. This is also pending the satisfaction of its tender offer. Until then, Momenta will continue to operate as a separate and independent company.
Momenta Pharma has a validated innovative scientific platform focused on discovering and developing novel biologic therapeutics to treat rare immune-mediated diseases and advancing its late stage biosimilars.
Momenta’s management noted that this agreement with Johnson & Johnson recognizes the value created by programs such as nipocalimab, which have the potential to improve the lives of countless patients suffering from autoimmune and fetal maternal diseases. At the same time, the acquisition provides a strong and compelling value for shareholders.
Excluding Wednesday’s move, Momenta stock had outperformed the broad markets with a gain of about 56% year to date. In the past 52 weeks, the share price was up closer to 148%.
Momenta Pharmaceuticals stock traded up about 69% to $52.13 Wednesday morning, in a 52-week range of $11.91 to $52.20. The consensus price target is $44.88.
Johnson & Johnson stock was up about 1% to $151.28. Analysts have a $166.06 consensus price target. The stock has traded within the range of $109.16 to $157.00 over the past year.