Health Care Company Johnson & Johnson Announces Merger With Ambrx Biopharma

Johnson & Johnson JNJ has announced a merger with Ambrx Biopharma AMAM that is expected to be completed 2024-H1.

Under the terms of the agreement, Johnson & Johnson has agreed to give Ambrx Biopharma $2.00 billion in cash in exchange for AMAM stock.

About The Companies Involved

Johnson & Johnson is the world's largest and most diverse healthcare firm. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer.

Ambrx Biopharma Inc is a clinical-stage biologics company focused on discovering and developing a novel class of engineered precision biologics (EPBs) using its proprietary expanded genetic code technology platform that allows incorporating synthetic amino acids (SAAs) into proteins within living cells. Its product pipeline includes ARX788, ARX517, ARX305 among others.

How A Merger Works

A merger happens when a company combines operations with another company. In practice, one company will buy the other company's stock in exchange for its own stock. In some cases, cash is used to pay for the company's stock but usually the companies agree to a stock-for-stock transaction.

Due to the exchange and acquisition of stock, a merger is similar to an acquisition. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.

Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.

This article was generated by Benzinga's automated content engine and reviewed by an editor.