thought this was interesting..If BP is willing to pay 1.75B for a mid stage company with no approved or commercialized products what do you think Amarantus is worth?
Johnson & Johnson JNJ -0.51% agreed to pay $1.75 billion to acquire privately held Alios BioPharma Inc., a developer of experimental treatments for viral diseases including hepatitis C.
The deal would give Johnson & Johnson several early-stage drugs that will help refill the health-care conglomerate's pharmaceutical pipeline. Analysts said the deal carries significant risks because none of Alios's drugs have yet entered late-stage trials.
Alios's most advanced drug is being tested in mid-stage studies for the treatment of respiratory syncytial virus, or RSV, a lung infection responsible for as many as 125,000 hospitalizations annually of children under the age of one, according to the Centers for Disease Control and Prevention. There are currently no specific drugs approved for RSV. Competitors including Gilead Sciences Inc. GILD -1.33% are also developing treatments for the disease.
"We are excited that this acquisition will enable us to explore treatment options for a number of viral infections, including RSV, the last of the major pediatric diseases with no available preventive therapy," William N. Hait, global head of research and development at J&J's JJSF +0.41% Janssen Pharmaceuticals division, said in a written statement.
Seema Kumar, a J&J spokeswoman, said Alios's RSV drug was the "key driver" behind the deal.
Derrick Sung, a biotechnology analyst with Sanford C. Bernstein Co., LLC, said in a research note that $1.75 billion "seems a very high price to pay," but that the deal also presents "a large opportunity" because of the unmet medical need among RSV patients.
The purchase of Alios, based in South San Francisco, Calif., would also give J&J two early-stage treatments for hepatitis C, a disease market currently dominated by Gilead Sciences. J&J's hepatitis C pill Olysio has had $1.18 billion in sales in the first half of 2014, but future sales are threatened by the expected approval of new drug regimens from Gilead and others in the coming months.
Neither of Alios's early-stage hepatitis C drugs has yet been tested in humans. However, if successful, J&J could combine one or both of them with Olysio to create a more potent hepatitis C treatment. Alios said in September it would begin testing one of the compounds, AL-335, in early-stage clinical trials in the fourth quarter of this year. The other compound, AL-516, is expected to enter early-stage testing in 2015.
Alios has a separate hepatitis C drug, called ALS-2200, that is being co-developed with Vertex Pharmaceuticals Inc. and is currently in mid-stage studies. However, analysts at RBC Capital Markets said the drug had proven disappointing in clinical studies. Vertex said earlier this year that it planned to out-license the Alios drug as part of its decision to cease development of hepatitis C drugs altogether. J&J declined to comment.
The deal is expected to close in the fourth quarter.
J&J, which sells an array of prescription drugs, medical devices and over-the-counter health products, has posted stronger results this year, buoyed by growth in its pharmaceuticals business. In the second quarter, prescription drug revenue jumped 21%.
Johnson & Johnson JNJ -0.51% agreed to pay $1.75 billion to acquire privately held Alios BioPharma Inc., a developer of experimental treatments for viral diseases including hepatitis C.
The deal would give Johnson & Johnson several early-stage drugs that will help refill the health-care conglomerate's pharmaceutical pipeline. Analysts said the deal carries significant risks because none of Alios's drugs have yet entered late-stage trials.
Alios's most advanced drug is being tested in mid-stage studies for the treatment of respiratory syncytial virus, or RSV, a lung infection responsible for as many as 125,000 hospitalizations annually of children under the age of one, according to the Centers for Disease Control and Prevention. There are currently no specific drugs approved for RSV. Competitors including Gilead Sciences Inc. GILD -1.33% are also developing treatments for the disease.
"We are excited that this acquisition will enable us to explore treatment options for a number of viral infections, including RSV, the last of the major pediatric diseases with no available preventive therapy," William N. Hait, global head of research and development at J&J's JJSF +0.41% Janssen Pharmaceuticals division, said in a written statement.
Seema Kumar, a J&J spokeswoman, said Alios's RSV drug was the "key driver" behind the deal.
Derrick Sung, a biotechnology analyst with Sanford C. Bernstein Co., LLC, said in a research note that $1.75 billion "seems a very high price to pay," but that the deal also presents "a large opportunity" because of the unmet medical need among RSV patients.
The purchase of Alios, based in South San Francisco, Calif., would also give J&J two early-stage treatments for hepatitis C, a disease market currently dominated by Gilead Sciences. J&J's hepatitis C pill Olysio has had $1.18 billion in sales in the first half of 2014, but future sales are threatened by the expected approval of new drug regimens from Gilead and others in the coming months.
Neither of Alios's early-stage hepatitis C drugs has yet been tested in humans. However, if successful, J&J could combine one or both of them with Olysio to create a more potent hepatitis C treatment. Alios said in September it would begin testing one of the compounds, AL-335, in early-stage clinical trials in the fourth quarter of this year. The other compound, AL-516, is expected to enter early-stage testing in 2015.
Alios has a separate hepatitis C drug, called ALS-2200, that is being co-developed with Vertex Pharmaceuticals Inc. and is currently in mid-stage studies. However, analysts at RBC Capital Markets said the drug had proven disappointing in clinical studies. Vertex said earlier this year that it planned to out-license the Alios drug as part of its decision to cease development of hepatitis C drugs altogether. J&J declined to comment.
The deal is expected to close in the fourth quarter.
J&J, which sells an array of prescription drugs, medical devices and over-the-counter health products, has posted stronger results this year, buoyed by growth in its pharmaceuticals business. In the second quarter, prescription drug revenue jumped 21%.
