Carmel Valley's Aragon Pharmaceuticals Bought by Johnson & Johnson

 A 4-year-old San Diego-based life sciences company in the second stage of testing for a prostate cancer treatment is being bought by pharmaceutical giant Johnson & Johnson, the companies announced Monday.

Aragon Pharmaceuticals Inc., located at 12780 El Camino Real in Carmel Valley, and its androgen receptor antagonist program will be purchased for $650 million and as much as $350 million in later performance payments. Aragon management also announced it would spin off a separate company before the deal closes.

Aragon has developed a compound called ARN-509, which is in the second phase of trials in patients with a resistant strain of prostate cancer.

"This agreement represents seamless transition between biotech and Pharma and will provide an optimal outcome for the ARN-509 program and the prostate cancer patient community," said Richard A. Heyman,  CEO and co- founder of Aragon Pharmaceuticals.

"The Aragon team is passionate about bringing game-changing therapies to cancer patients and is excited to have Johnson & Johnson carry forward this innovative prostate cancer treatment," Heyman said. "Johnson & Johnson is clearly a recognized leader in the oncology field, and their development and commercial capabilities in the prostate cancer area are unparalleled."

According to the announcement, Heyman and his management team will create Seragon Pharmaceuticals, which will focus on a compound being tested as a possible treatment for metastatic breast cancer.

-City News Service