Johnson & Johnson (J&J) has announced that it will be acquiring antibody drug conjugates (ADC) specialist Ambrx Biopharma for approximately $2bn.
J&J said the Scripps Research Institute spinout’s ADC technology incorporates the advantages of highly specific targeting monoclonal antibodies securely linked to a potent chemotherapeutic payload “to achieve targeted and efficient elimination of cancer cells without the prevalent side effects typically associated with chemotherapy”.
Ambrx has a portfolio of clinical and preclinical programmes, including its lead candidate, ARX517, a prostate-specific membrane antigen (PSMA)-targeting ADC for metastatic castration-resistant prostate cancer (mCRPC).
J&J said it intends to work with Ambrx researchers to accelerate the phase 1/2 APEX-01 study of ARX517 in advanced prostate cancer, following promising results from the phase 1 portion of the trial.
Margaret Yu, prostate cancer disease area leader, J&J Innovative Medicine, said: “We see a unique opportunity to harness the potential of this innovative ADC platform and, with our deep understanding of prostate cancer, deliver a targeted PSMA therapeutic for addressing the growing needs of the more than 185,000 patients living with metastatic castration-resistant disease today.”
Through the acquisition, J&J will also gain access to ARX788, an ADC targeting human epidermal growth factor receptor 2 for metastatic HER2-positive breast cancer, and ARX305, an ADC targeting CD-70 for renal cell carcinoma.
Under the terms of the agreement, which is expected to close in the first half of this year, J&J will acquire all outstanding shares of Ambrx’s common stock for $28 per share in cash.
Daniel O’Connor, chief executive officer of Ambrx, said: “We are excited to reach this agreement with J&J for advancing scientific research to treat cancers with high unmet needs.”
“Through this transaction, we will continue to advance our leading prostate cancer candidate and Ambrx’s promising pipeline, while delivering significant and certain cash value to our shareholders,” he added.
The announcement comes just over a year after J&J completed its $16.6bn acquisition of Abiomed, marking a significant expansion to its cardiovascular technologies portfolio.
The company’s Janssen unit also entered into a global licensing agreement with Nanobiotix worth over $2.5bn in July last year to gain global rights to a drug designed to enhance the efficacy of radiotherapy.