Johnson & Johnson to buy Aragon Pharmaceuticals
Will acquire a late-stage prostate cancer treatment and thereby strengthen its oncology pipeline
Johnson & Johnson is to buy San Diego, US-based Aragon Pharmaceuticals, a private company focused on developing drugs to treat hormonally-driven cancers, for US$650 million in cash and a possible second payment of up to $350 million if it meets certain milestones.
The deal should be completed in the third quarter of 2013.
The acquisition includes Aragon's most advanced drug, called ARN-509, which is currently being evaluated as a treatment for castration resistant prostate cancer (CRPC).
It does not include development of Aragon’s treatment for breast cancer, which will be spun off into a separate company called Seragon Pharmaceuticals before the deal with J&J is completed and will be run by Aragon’s Chief Executive.
The boards of directors of both Johnson & Johnson and Aragon have approved the transaction.
‘The acquisition of Aragon further enhances our leadership in prostate cancer drug development. ARN-509 complements ZYTIGA and provides the potential for exciting, novel approaches to treat prostate cancer patients,’ said Peter Lebowitz, Global Therapeutic Area Head, Oncology for Janssen Research & Development, which is a division of Johnson & Johnson. ‘Prostate cancer is one of our main areas of focus, and we are pleased to be adding ARN-509 to our portfolio.’
