J&J Makes Play for Cougar Biotech
The listed global pharmaceutical and retail company takes an oncology firm into its platform at a time when cancer treatment M&A has risen.
May 22, 2009
Johnson & Johnson, the listed global pharmaceutical and retail products company, will buy Cougar Biotechnology for about $1 billion in cash, the companies announced.
Both companies’ boards have already signed off on the transaction.
Cougar, a listed, California company, will be bought for about $1 billion, or about $43 per share; its shares traded up in Friday’s morning session, about 15% to $42.75. Cougar develops products to treat prostate cancer and breast cancer.
A Credit Suisse report posted at Thomson Analytics stated that the offer represents a 35% premium on the target’s stock value over the last three months and a 16% premium on its share value from its most recent closing price. The analysis said the late-stage asset buy will support J&J’s growth into the oncology space and will support its pharmaceutical business.
The Johnson & Johnson play mirrors another recent M&A move by a drugmaking giant.
Earlier this month, Takea Pharmaceutical Co., Japan’s largest drugmaker, bought Irvine., Calif. based IDM Pharma for about $75 million.
The deal will be subject to customary closing and anti-trust provisions. Cravath, Swaine & Moore represented Johnson & Johnson in the transaction.
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