Shares of Tesaro Inc. gained in New York trading Wednesday after the drugmaker said Johnson & Johnson will pay $85 million for rights to develop and sell its experimental pill for prostate cancer, a disease area where J&J is looking to defend its dominance.
J&J will invest $50 million in Tesaro stock, paying $44.24 a share, and will pay $35 million in cash up front for rights to the cancer drug, called niraparib, according to a statement Wednesday. Waltham, Massachusetts-based Tesaro may also get as much as $415 million in potential milestone payments from J&J.
