Johnson & Johnson will acquire cancer treatment developer Halda Therapeutics for US$3.05 billion (A$4.68 billion), as it sharpens its focus on novel treatments in fields like oncology.
Halda specialises in RIPTAC treatments, a new category of drugs that selectively target cancer cells. Its lead drug candidate is in early to mid-stage development, and is an oral medication for prostate cancer.
“Many therapies lose effectiveness over time due to resistance. 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 C. Reed, Johnson & Johnson’s executive vice president, Innovative Medicine, Research & Development.
“Through this transaction, we will continue to rapidly develop this promising program for patients with prostate cancer and advance Halda’s innovative pipeline from its RIPTAC platform to address a range of diseases,” said Halda CEO Christian S. Schade.
The transaction is set to close in the next few months, Halda said.
This is the first time a major company has acquired a RIPTAC startup, though no RIPTAC drugs have yet been approved by regulators.
Halda is also developing treatments targeting breast cancer and lung cancer.
Johnson & Johnson said in October that it would focus on high-growth fields with high margins, including oncology and immunology. It will separate its orthopedics business into a new company within the next two years.
The company’s Innovative Medicine segment reported a 6.8% year-over-year increase in sales last quarter, reaching $15.56 billion.
Johnson & Johnson’s (NYSE: JNJ) share price closed at $199.58, up from its previous close at $195.93. Its market capitalisation is $480.46 billion.
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