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J&J acquiring Aragon for androgen receptor antagonist program

June 18, 2013 12:38 AM UTC

Johnson & Johnson (NYSE:JNJ) will acquire cancer company Aragon Pharmaceuticals Inc. (San Diego, Calif.) for $650 million in cash up front, plus up to $350 million in milestones. J&J will gain Aragon's androgen receptor antagonist program, which includes ARN-509, a second-generation androgen receptor antagonist in Phase II testing to treat castration-resistant prostate cancer (CRPC). Prior to the deal, Aragon will spin out into Seragon Pharmaceuticals all of its assets outside of the androgen receptor antagonist program. The newco -- which will be financed by existing Aragon investors and will retain Aragon's management team -- will focus on Aragon's selective estrogen receptor degrader (SERD) platform, including ARN-810, an oral SERD in Phase I testing for estrogen receptor-positive metastatic breast cancer.

J&J said ARN-509 will complement Zytiga abiraterone acetate, which the pharma markets in the U.S. and EU in combination with prednisone to treat metastatic CRPC. The deal, which has been approved by the boards of both companies, is slated to close next quarter. BofA Merrill Lynch advised Aragon. ...