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J&J Inks Deal With Arrowhead for Promising Liver Candidate
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Johnson & Johnson (JNJ - Free Report) announced that it has inked an exclusive licensing deal with Arrowhead Pharmaceuticals, Inc. to develop/commercialize the latter’s subcutaneous RNA interference (RNAi) therapy candidate, ARO-HBV. Notably, ARO-HBV is currently being evaluated in a phase I/II study for the treatment of chronic hepatitis B viral infection. While Arrowhead will complete the ongoing phase I/II program on the candidate, J&J will take over its development stages from phase IIb onward.
Simultaneously, Arrowhead will collaborate for up to three additional RNAi therapeutics against new targets to be selected by J&J, per option agreement. The combined value of the transaction is estimated to be more than $3.7 billion. The deal is expected to close in the fourth quarter of 2018, subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
Upon completion, J&J will make an upfront payment of $175 million to Arrowhead. Additionally, J&J’s investment arm, Johnson & Johnson Innovation – JJDC, Inc., will make an equity investment worth $75 million in Arrowhead at $23 per share of Arrowhead’s common stock.
Moreover, J&J will be entitled to pay $3.5 billion as potential milestones. If the candidate is approved, Arrowhead is also eligible to receive tiered royalties up to mid-teens on net sales.
However, investors probably believe that Arrowhead has been underpaid for this potential blockbuster candidate. As a result, shares of Arrowhead fell more than 17% following the news.
ARO-HBV, a next-generation RNAi therapy candidate, is being developed to silence HBV gene by principally targeting two regions of the HBV gene.
Shares of J&J have slipped 0.2% so far this year against the industry’s increase of 8.1%.
We remind investors that in August 2018, the FDA approved Alnylam Pharmaceuticals’ (ALNY - Free Report) Onpattro (patisiran) injection, a first-of-its-kind RNA interference (RNAi) therapy, for treating polyneuropathy of hereditary transthyretin-mediated (hATTR) amyloidosis in adults. Onpattro is the first and the only FDA-approved treatment for this indication.
Roche’s earnings estimates have been revised 4.7% upward for 2018 and 6% for 2019 over the past 60 days.
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J&J Inks Deal With Arrowhead for Promising Liver Candidate
Johnson & Johnson (JNJ - Free Report) announced that it has inked an exclusive licensing deal with Arrowhead Pharmaceuticals, Inc. to develop/commercialize the latter’s subcutaneous RNA interference (RNAi) therapy candidate, ARO-HBV. Notably, ARO-HBV is currently being evaluated in a phase I/II study for the treatment of chronic hepatitis B viral infection. While Arrowhead will complete the ongoing phase I/II program on the candidate, J&J will take over its development stages from phase IIb onward.
Simultaneously, Arrowhead will collaborate for up to three additional RNAi therapeutics against new targets to be selected by J&J, per option agreement. The combined value of the transaction is estimated to be more than $3.7 billion. The deal is expected to close in the fourth quarter of 2018, subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
Upon completion, J&J will make an upfront payment of $175 million to Arrowhead. Additionally, J&J’s investment arm, Johnson & Johnson Innovation – JJDC, Inc., will make an equity investment worth $75 million in Arrowhead at $23 per share of Arrowhead’s common stock.
Moreover, J&J will be entitled to pay $3.5 billion as potential milestones. If the candidate is approved, Arrowhead is also eligible to receive tiered royalties up to mid-teens on net sales.
However, investors probably believe that Arrowhead has been underpaid for this potential blockbuster candidate. As a result, shares of Arrowhead fell more than 17% following the news.
ARO-HBV, a next-generation RNAi therapy candidate, is being developed to silence HBV gene by principally targeting two regions of the HBV gene.
Shares of J&J have slipped 0.2% so far this year against the industry’s increase of 8.1%.
We remind investors that in August 2018, the FDA approved Alnylam Pharmaceuticals’ (ALNY - Free Report) Onpattro (patisiran) injection, a first-of-its-kind RNA interference (RNAi) therapy, for treating polyneuropathy of hereditary transthyretin-mediated (hATTR) amyloidosis in adults. Onpattro is the first and the only FDA-approved treatment for this indication.
Johnson & Johnson Price and Consensus
Johnson & Johnson Price and Consensus | Johnson & Johnson Quote
Zacks Rank & Another Stock to Consider
J&J currently carries a Zacks Rank #2 (Buy). Another top-ranked stock in the same sector is Roche Holding AG (RHHBY - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Roche’s earnings estimates have been revised 4.7% upward for 2018 and 6% for 2019 over the past 60 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>