After negotiations dating back to August, Johnson & Johnson (NYSE: JNJ) has agreed to acquire Swiss biopharma Actelion (SIX: ATLN) for $280 per share in cash (about CHF280), far outstripping Morningstar’s fair-value estimate of CHF112. J&J plans to use US dollars held in Europe to pay for the roughly $30 billion pickup, which will add a lucrative stable of drugs to its portfolio. The deal is expected to close by the end of next quarter.

Actelion

Actelion

The transaction will result in Actelion spinning out its drug-discovery and early-stage clinical development operations into a new company—the aptly named R&D NewCo—which will be listed on the Swiss stock exchange. J&J will initially hold a 16% stake in the new company, along with rights to an additional 16% stake through a convertible note.

J&J first sat down with Actelion late last summer, according to The Wall Street Journal, before the companies made their courtship public in November. French drugmaker Sanofi (NYSE: SNY) made an attempt to cut in when talks temporarily stalled, but J&J ultimately returned to engage Actelion exclusively.

Founded in 1887, J&J has steadily acquired at least two companies each year since 2008, according to the PitchBook Platform. Its latest big-ticket deal was the purchase of personal-care products maker Vogue International for $3.3 billion in July.

As J&J’s autoimmune-therapy drug Remicade, the company’s best-selling offering in the US during 2015, now faces competition from Inflectra, a copy created by Pfizer (NYSE: PFE), pricing pressures from generics go a long way toward explaining the 23% premium paid for Actelion over its closing price on Wednesday. The sticker price amounts to an 80% over its closing price on November 23, when reports came out about J&J’s interest. Shares in Actelion had traded at a low of CHF135.30 just a couple weeks earlier. On Thursday, Actelion stock leaped over 19% to close at CHF271.60, while J&J shares held steady.

Article by Adam Putz, PitchBook