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news.Johnson & Johnson has signed a definitive agreement to acquire TransForm Pharmaceuticals, a drug molecule formulation and crystallization company, for $230 million.
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The $230 million cash-for-stock transaction is expected to close in the second quarter of 2005, subject to customary closing conditions and regulatory approvals.
Following the acquisition, Johnson & Johnson expects TransForm to remain in its headquarters in Lexington, Massachusetts, where it has created a new facility housing its suite of technologies for the formulation and crystallization of pharmaceutical products.
“The scientific expertise and intellectual property estate at TransForm provide value-creating opportunities across Johnson & Johnson’s diverse pipeline, and immediately expand our ability to create new therapies,” said Dr Harlan Weisman, company group chairman of R&D, pharmaceuticals, at Johnson & Johnson.
Upon closing, Johnson & Johnson is expected to incur an estimated one-time after-tax charge of approximately $50 million, or $0.02 per share, reflecting the expensing of in-process R&D charges. This transaction does not affect the company’s guidance.