Metabolex and J&J: Why Biotech's Pipelines Needs Pharma's

The J&J/Metabolex drug-swap transaction creates significant value for a private company looking to maximize the exit opportunities for its investors. But radical as it appears for the hitherto conservative J&J, the structure allows the alliance to morph comfortably into a very traditional J&J deal: an acquisition. Moreover, while Metabolex is leveraging J&J's pipeline to the benefit of its investors, J&J is leveraging Metabolex's investors to the benefit of its P&L.