US-based Johnson & Johnson has agreed to buy Aragon Pharmaceuticals, a discovery and development company focused on drugs to treat hormonally-driven cancers, for nearly $1bn.
As per the acquisition agreeement, an upfront cash payment of $650m in addition to $350m as contingent payments on achieving predetermined milestones will be paid by J&J.
Boosting Johnson & Johnson's oncology pipeline, the acquisition includes Aragon's androgen receptor antagonist program, including ARN-509 drug candidate which is in Phase 2 development for castration resistant prostate cancer.
Janssen Research & Development oncology global therapeutic area head Peter Lebowitz said the acquisition of Aragon further enhances its leadership in prostate cancer drug development.
"ARN-509 complements ZYTIGA and provides the potential for exciting, novel approaches to treat prostate cancer patients," Lebowitz added.
Subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, Aragon's consummation of the spin-off of the newly created company, and other customary closing conditions, the transaction is scheduled to close in the third quarter of 2013.
Prior to closing, all the assets of Aragon excluding its androgen receptor antagonist program will be transferred to a newly formed company that will spin off from Aragon.
