Ortho-McNeil Pharmaceutical, Inc., a subsidiary of Johnson & Johnson, is acquiring Peninsula Pharmaceuticals, Inc., a privately held biopharmaceutical company focused on developing and commercializing antibiotics to treat life-threatening infections.

Peninsula's lead product candidate, doripenem, is a broad-spectrum antibiotic and a new member of the carbapenem class of beta-lactam antibiotics. Peninsula is currently evaluating doripenem in six Phase III clinical trials. In addition, doripenem received Fast Track designation from the US FDA for the treatment of nosocomial pneumonia, including ventilator-associated pneumonia (VAP).

The cash-for-stock transaction is valued at approximately $245 million and is expected to close in the second quarter. Upon closing, Johnson & Johnson expects to incur a one-time after-tax charge of approximately $0.08 per share, as substantially all of the purchase price will be expensed as in-process research and development.

Prior to completing the acquisition, Peninsula will spin out PPI-0903, a fifth generation broad-spectrum cephalosporin into Cerexa, Inc., a newly-formed company which will not be owned by Johnson & Johnson post-closing, the J&J release said.