Johnson & Johnson Acquires Aragon Pharmaceuticals

Johnson &Johnson will acquire Aragon Pharmaceuticals (Private), a company developing ARN-509. ARN-509 is an androgen receptor antagonist similar to XTANDI™ (enzalutamide), and was designed by the same medicinal chemists who created Medivation's drug. 

Transaction Rationale

We believe this transaction basically an acceptance by JNJ that Medivation compound Xtandi is likely to emerge superior compared to its own prostate cancer drug Zytiga (abiraterone acetate).

Transaction Valuation

Under the terms of the agreement, Johnson & Johnson will make an upfront cash payment of $650mm, plus additional contingent payments of up to $350mm based on reaching predetermined milestones