LONDON (ShareCast) - (Sharecast News) - Shares of biotechnology company Momenta Pharmaceuticals surged on Wednesday after it agreed to be bought by Johnson & Johnson in a $6.5bn deal.
Under the terms of the agreement, J&J will buy Momenta for $52.50 per share in cash, which is a 70% premium to Momenta's closing price on Tuesday. The deal, which was unanimously approved by the boards of directors of both companies, is expected to be completed in the second half of the year.

Momenta is focused on discovering and developing novel biologic therapeutics to treat rare immune-mediated diseases. The acquisition will give J&J access to Momenta's experimental therapy, nipocalimab, which is being tested for neuromascular disease myasthenia gravis.

The company's president and chief executive, Craig Wheeler, said: "The agreement with J&J recognises the value created by years of commitment and dedication to our mission by the many current and past Momenta employees.

"Programs such as nipocalimab have the potential to improve the lives of countless patients suffering from autoimmune and fetal maternal diseases.

"This acquisition provides strong value for our shareholders and ensures a level of investment in our exciting portfolio that will further enhance its potential for patients. I believe J&J is the right company to advance our portfolio of novel drug candidates for autoimmune and rare diseases."

At 1255 BST, Momenta shares were up 69% in pre-market trade to $52.14.

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