Johnson & Johnson plans to acquire Ambrx, a clinical-stage biotechnology company developing cancer treatments, for $1.9 billion.
The companies announced the deal Jan. 8. The transaction is expected to close in the first half of the year, pending Ambrx shareholder approval.
Ambrx is developing a pipeline of next-generation antibody drug conjugates, known as ADCs, to treat cancers with high unmet needs, including metastatic castration-resistant prostate cancer, metastatic HER2+ breast cancer and renal cell carcinoma.
J&J said in a news release that it will collaborate with Ambrx researchers to accelerate work on a treatment for advanced prostate cancer that is currently in phase 1/phase 2 studies.
The move comes as J&J aims to fill a hole in revenue it is facing in 2025 when Stelara, its top-selling psoriasis drug, will see competition from cheaper generics, Bloomberg reported.
The company spun off its consumer health business in 2022 and is now homing in on cancer drug development and medical technology.