-=Momenta Pharma (MNTA) to be acquired by Johnson and Johnson (JNJ) for $52.50/share

Momenta Pharma to be acquired by Johnson and Johnson (JNJ) for $52.50/share in cash

Johnson & Johnson (JNJ) announces it has entered into a definitive agreement to acquire MNTA, a company that discovers and develops novel therapies for immune-mediated diseases, in an all cash transaction for approximately $6.5 billion.

The closing of the offer is conditioned on the tender of a majority of the outstanding shares of Momenta's common stock on a fully diluted basis, as well as clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The $6.1 billion estimated net value of the transaction is based on Momenta's estimated fully diluted shares outstanding, less estimated net cash at time of closing.

"The transaction is expected to close in the second half of 2020. While the closing of the transaction is expected to be modestly dilutive, the Company is maintaining its current 2020 Adjusted EPS guidance range. Looking ahead, the costs associated with the development of Momenta's portfolio are expected to be incremental to planned R&D investment levels over the next few years given the value creation potential of our current portfolio, and thus expect this incremental investment in R&D to have an EPS impact worth approximately $0.10-$0.15 in 2021."

Co reaffirms guidance for FY20 (Dec), sees EPS of $7.75-7.95 vs. $7.87 S&P Capital IQ Consensus; sees FY20 (Dec) revs of $81-82.5 bln vs. $80.54 bln S&P Capital IQ Consensus.