Today Is Cancer-Focused Deals Day: Johnson & Johnson Scoops Up Ambrx Biopharma As Merck Boosts Cancer Portfolio With Harpoon Deal

Monday, Johnson & Johnson JNJ has agreed to acquire Ambrx Biopharma Inc AMAM in an all-cash merger transaction for a total equity value of approximately $2.0 billion, or $1.9 billion net of estimated cash acquired. Johnson & Johnson will acquire Ambrx for $28.00/share. 

Ambrx is advancing a portfolio of clinical and preclinical programs designed to optimize efficacy and safety of its candidate therapeutics in multiple cancer indications, including ARX517, its proprietary ADC targeting PSMA for metastatic castration-resistant prostate cancer (mCRPC); ARX788, its proprietary ADC targeting human epidermal growth factor receptor 2 (HER2) for metastatic HER2+ breast cancer; and ARX305, its proprietary ADC targeting CD-70 for renal cell carcinoma.

The planned acquisition presents a distinct opportunity for Johnson & Johnson to design, develop, and commercialize targeted oncology therapeutics. 

Ambrx was spun out of The Scripps Research Institute in 2003. The company pioneered the expanded genetic code technology platform for incorporating synthetic amino acid (SAA) into proteins at any selected site using industry-standard cell lines. 

SAAs allow engineered precision biologics with site-specific, homogenous, and stable conjugation, overcoming the limitations of traditional conjugation technologies.

The deal is expected to be completed in the first half of 2024.

In October, Ambrx Biopharma shared updated safety and efficacy data from the ongoing Phase 1/2 trial, APEX-01, evaluating ARX517 for metastatic castration-resistant prostate cancer, showing that 7 out of 9 patients experienced a ≥50% prostate-specific antigen reduction.

Earlier Monday, Merck & Co Inc MRK agreed to acquire Harpoon Therapeutics Inc HARP for $23.00 per share in cash for an approximate total equity value of $680 million.

Price Action: AMAM shares are up 98.30% at $27.04 on the last check Monday.