Pitch Best Mid-Cap Corporate Deal M&A Awards Belgium 2019: Johnson & Johnson – ArgenX

Name of the deal:       Johnson & Johnson acquires stake in ArgenX.        
Date closed:                3rd of December 2018
Published value:         €176 million    
Buyer:                          Johnson & Johnson 
Target:                         ArgenX
Seller:                           ArgenX shareholders
M&A Database:          https://mena.nl/deal/9507

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Pitch

Description of the deal 
Argenx has entered an exclusive global collaboration and license agreement with Cilag GmbH International, an affiliate of Janssen (Johnson & Johnson), for cusatuzumab (ARGX-110) an experimental antibody that targets CD70 and is currently in Phase I/II trials in patients with acute myeloid leukaemia (AML) and high-risk myelodysplastic syndromes.

Deal rationale:
Cusatuzumab offers a novel mode of action targeting leukemic stem cells. Janssen is an ideal strategic partner for Argenx to develop this differentiated investigational therapy given its extensive clinical, regulatory and commercial expertise in oncology, and to reach the broadest number of patients as quickly as possible. The collaboration also strengthens Argenx' financial position, enabling its growth. 

What is the impact of this deal for the company?
– Under the deal, Janssen will make an upfront payment of $300 million, with Argenx eligible to receive milestones of up to $1.3 billion, as well as tiered, double-digit royalties.
– Johnson & Johnson Innovation will make $200 million equity investment in Argenx.

What is the impact of this deal for the direct stakeholders?
They can stay on board a promising company, that now has new growth opportunities.

What is the impact of this deal on the society?
Cusatuzumaba is a promising antibody for the treatment of AML and other blood cancers where current treatment is limited and effective new interventions are needed for patients. It could transform the treatment of diseases and save the lives of patients worldwide.

Why does this deal deserve a nomination?
Janssen is an ideal strategic partner for Argenx to reach the broadest number of patients as quickly as possible. The collaboration also strengthens Argenx' financial position, enabling its growth. 

Comments Panel of judges
The license deal that Argen-X was able to conclude with Cilag, part of the American pharmaceutical giant Johnson & Johnson, is a deal that you rarely find in Europe. The Panel of Judges is impressed by the strategic rationale behind the deal. Argen-X not only knows how to strengthen its financial position, but also creates a platform to roll out its (future) products.