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Johnson & Johnson to acquire Ambrx Biopharma for $2 billion

EditorRachael Rajan
Published 09/01/2024, 12:20 am
© Reuters.
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SAN DIEGO - Ambrx Biopharma Inc. (NASDAQ: AMAM), a clinical-stage biopharmaceutical company, has agreed to be acquired by healthcare giant Johnson & Johnson (NYSE:JNJ) in an all-cash transaction valued at approximately $2.0 billion. Announced today, the deal will see Johnson & Johnson purchasing Ambrx's outstanding shares for $28.00 each, a 105% premium over Ambrx’s closing stock price as of last Thursday.

This acquisition is set to bolster Johnson & Johnson's oncology portfolio, particularly with Ambrx's proprietary Antibody Drug Conjugate (ADC) technology, which is designed for targeted cancer treatment with reduced side effects. Ambrx's leading prostate cancer candidate, ARX517, currently in Phase 1/2 clinical trials, along with other novel product candidates, are expected to benefit from the combined expertise and resources following the acquisition.

Daniel J. O’Connor, CEO of Ambrx, expressed optimism about the agreement, stating that the transaction is a testament to two decades of scientific innovation and hard work. He anticipates further advancements in Ambrx's pipeline as part of Johnson & Johnson.

The transaction has received unanimous approval from Ambrx's Board of Directors and is anticipated to close in the first half of 2024, pending customary closing conditions. These include approval by Ambrx shareholders and regulatory clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

Centerview Partners LLC and Cantor Fitzgerald & Co. are serving as financial advisors to Ambrx, while Skadden, Arps, Slate, Meagher & Flom LLP is providing legal counsel.

Ambrx, founded in 2003 as a spinout from The Scripps Research Institute, specializes in using expanded genetic code technology to develop next-generation therapeutics. The company's focus is on optimizing efficacy and safety across various cancer indications.

The information in this article is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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