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Johnson & Johnson (JNJ.N), opens new tab said on Monday it would buy privately held Halda Therapeutics for $3.05 billion in cash, aiming to expand its presence in treatments targeting solid tumors and prostate cancer.
This marks the medtech conglomerate's second major deal this year, after its $14.6 billion acquisition of neurological drug maker Intra-Cellular Therapies in January, reinforcing its push in higher-growth healthcare segments as it navigates the loss of exclusivity for its blockbuster immune disease treatment Stelara.
J&J has also pursued multiple deals in recent years to strengthen its pharmaceuticals and medical devices units, including a $13.1 billion purchase of Shockwave Medical in 2024.
Halda's lead drug candidate, HLD-0915, is in early to mid-stage development for the treatment of prostate cancer. It also has several experimental treatments for breast, lung and other types of tumors.
The company is a "strong strategic fit" that provides a potential "mid- and long-term catalyst" for J&J's fast-growing oncology franchise, RBC Capital Markets analyst Shagun Singh said.
The tuck-in deal aligns with J&J management's stated preference for acquisitions in areas where it already has "internal capabilities and the know-how", Singh said.
Last month, J&J's pharmaceuticals segment, which includes its cancer drugs, reported revenue of $15.56 billion for the third quarter, above analysts' estimate of $15.42 billion, according to data compiled by LSEG.
Halda's "innovative technology is designed to work even when cancers no longer respond to standard treatments using a novel mechanism that enables the selective killing of cancer cells," said John Reed, executive vice president of pharmaceutical research and development at Johnson & Johnson.
Its RiPTAC technology works by linking a cancer marker to a protein essential for cell survival, selectively disabling that protein in cancer cells so they die while sparing the healthy ones.
J&J expects the deal to close within the next few months. Its shares were up 1% in morning trading.
(Source: Reuters)
