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news.Johnson & Johnson has signed a definitive $245 million agreement for its subsidiary Ortho-McNeil Pharmaceutical to acquire Peninsula Pharmaceuticals, a private biopharmaceutical firm focused on developing and commercializing antibiotics to treat life-threatening infections.
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Peninsula’s lead product candidate, doripenem, is a broad-spectrum antibiotic and a new member of the carbapenem class of beta-lactam antibiotics. Peninsula is currently evaluating doripenem in six phase III clinical trials. In addition, doripenem received fast track designation from the FDA for the treatment of nosocomial pneumonia, including ventilator-associated pneumonia (VAP).
The cash-for-stock transaction is valued at approximately $245 million and is expected to close in the second quarter of 2005. Upon closing, Johnson & Johnson expects to incur a one-time after-tax charge of approximately $0.08 per share.
Prior to completing the acquisition, Peninsula will spin out PPI-0903, a fifth generation broad-spectrum cephalosporin into Cerexa Inc, a newly-formed company that will not be owned by Johnson & Johnson post-closing.
In separate news, J&J has released its Q1 2005 results, revealing an analyst prediction-topping 17% increase in first-quarter earnings, reaching $2.9 billion.