Johnson & Johnson (NYSE:JNJ) (J&J) announced it reached an agreement to acquire Ambrx Biopharma (AMAM), a clinical-stage biopharmaceutical company specializing in next-generation antibody drug conjugates (ADCs).
The all-cash merger, valued at approximately $2.0 billion or $1.9 billion net of estimated cash acquired, will see J&J acquire all outstanding shares of Ambrx's common stock at $28.00 per share through a merger with a J&J subsidiary.
AMAM shares closed at $13.63 on Friday. The stock rose 21% in pre-market trade.
The transaction is set to close in the first half of 2024, contingent on Ambrx shareholder approval and compliance with regulatory requirements.
JNJ will hope that Ambrx brings its proprietary synthetic biology technology platform dedicated to designing and developing ADCs. The acquisition aligns with J&J's strategy to strengthen its portfolio in oncology and expand its capabilities in next-generation biologics.
“Ambrx’s ADC technology offers unique advantages in the conjugation of stable antibodies and cytotoxic linker payloads, which results in engineered ADCs that effectively kill cancer cells and limit toxicities,” said Yusri Elsayed, M.D., M.H.Sc., Ph.D., Global Therapeutic Area Head, Oncology, Johnson & Johnson Innovative Medicine.