Johnson & Johnson and Cougar Biotechnology, Inc. entered a definitive agreement under which J&J will acquire Cougar Biotechnology for approximately $1.0 billion in cash.

Cougar Biotechnology, a development stage biopharmaceutical company with an oncology focus, has compounds in development for the treatment of prostate cancer, breast cancer and multiple myeloma. The company will work with J&J’s Ortho Biotech Oncology R&D, a unit of Centocor R&D, Inc.

Cougar Biotechnology is currently conducting two Phase III trials for abiraterone acetate for the treatment of prostate cancer. The first trial is testing the drug in patients with metastatic, castration-resistant prostate cancer who have progressed after docetaxel-based chemotherapy has failed. The second Phase III trial is studying abiraterone acetate in patients with metastatic, castration-resistant prostate cancer who have yet to receive chemotherapy.

“The acquisition of Cougar Biotechnology with its talented team will strengthen our growing capabilities toward a leadership position in the global oncology market,” said William N. Hait, M.D., Ph.D., global therapeutic head, oncology, Ortho Biotech Oncology Research & Development. “We are developing new treatments that we anticipate will change the course of cancer treatment by targeting the tumor and its microenvironment and thereby will provide a meaningful difference in the lives of millions of patients worldwide.”

Alan H. Auerbach, chief executive officer, president and founder of Cougar Biotechnology, said, “Since the founding of Cougar approximately six years ago, our employees have been relentlessly dedicated to the development of innovative oncology drugs and the creation of shareholder value. We believe that this transaction strongly positions abiraterone acetate for future success with a leading healthcare company that has the expertise, resources, dedication and motivation to deliver it to the cancer patients who need it.”

The boards of directors of both companies have approved the transaction. The closing is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other closing conditions.