Johnson & Johnson to acquire Cougar Biotechnology

Johnson & Johnson has agreed to buy Cougar Biotechnology, a biopharmaceutical company focused on oncology, for US$970m (£690m) in cash.

Los Angeles-based Cougar Biotechnology is conducting two Phase III trials for an abiraterone acetate treatment for prostate cancer and will work with Ortho Biotech Oncology Research & Development, a division of J&J company Centocor Research & Development.

Cougar is also developing treatments for breast cancer and multiple myeloma.

"We are developing new treatments that we anticipate will change the course of cancer treatment by targeting the tumour and its microenvironment and thereby will provide a meaningful difference in the lives of millions of patients worldwide," said William Hait, global therapeutic head, Oncology, at Ortho Biotech Oncology Research & Development.

Alan Auerbach, ceo of Cougar Biotechnology, said: "We believe this transaction strongly positions abiraterone acetate for future success with a leading healthcare company that has the expertise, resources, dedication and motivation to deliver it to the cancer patients who need it."

The transaction is expected to close in the third quarter of 2009.