Johnson & Johnson (NYSE:JNJ) has announced its definitive agreement to acquire Ambrx Biopharma, a clinical-stage biopharmaceutical company, in an all-cash merger transaction for a total equity value of approximately $2 billion.
Ambrx is known for its proprietary synthetic biology technology platform to design and develop next-generation antibody drug conjugates (ADCs) for cancer treatment.
The acquisition is expected to enhance J&J's position in the development and commercialization of targeted oncology therapeutics, particularly in the field of antibody drug conjugates (ADCs) for cancer treatment.
Ambrx's proprietary ADC technology is designed to optimize the efficacy and safety of its candidate therapeutics in multiple types of cancer, including ARX517, a proprietary ADC targeting PSMA for metastatic castration-resistant prostate cancer; ARX788, a proprietary ADC targeting human epidermal growth factor receptor 2 (HER2) for metastatic HER2+ breast cancer; and ARX305, a proprietary ADC targeting CD-70 for renal cell carcinoma.
J&J aims to accelerate the development of these programs, particularly the Phase 1/2 APEX-01 study of ARX517 in advanced prostate cancer, to address the significant unmet medical need in the treatment of mCRPC.
The transaction is expected to close in the first half of 2024.
Shares of Ambrx shot up nearly 99% in premarket trading Monday to reach $27.11.