J&J announces $1bn deal to acquire Aragon Pharma

Johnson & Johnson is to acquire cancer-focused company, Aragon Pharmaceuticals, in a definitive agreement worth up to US $1 billion.

Aragon is a discovery and development company focused on drugs to treat hormonally-driven cancers. J&J's acquisition deal includes Aragon's androgen receptor signaling inhibitor, ARN-509, which is currently in phase 2 clinical trials for castration resistant prostate cancer (CRPC).

"The acquisition of Aragon further enhances our leadership in prostate cancer drug development. ARN-509 complements ZYTIGA® and provides the potential for exciting, novel approaches to treat prostate cancer patients. Prostate cancer is one of our main areas of focus, and we are pleased to be adding ARN-509 to our portfolio."

Peter F. Lebowitz, M.D., Ph.D., Global Therapeutic Area Head, Oncology for Janssen Research & Development, LLC.

Under terms of the agreement, J&J will make an upfront cash payment of $650 million, plus additional milestone payments of up to $350 million. The transaction is expected to close in the third quarter of 2013.

Prior to closing, Aragon will transfer all its other assets into a spin-off company called Seragon Pharmaceuticals, which will be run by Aragon's CEO.