Alexa J&J to purchase medical-device maker Abiomed
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J&J to purchase medical-device maker Abiomed


Healthcare

J&J to purchase medical-device maker Abiomed

Johnson & Johnson said it had agreed to purchase heart-device maker Abiomed Inc. in an all-cash deal valued at $16.6 billion upfront including cash.

Under the terms of the agreement, J&J agreed to pay $380 a stock unit up front and would pay an additional $35 a share if certain milestones are met. Abiomed shares closed at $252.08 on 1st November 2022.

Abiomed sells Impella heart pumps for the treatment of conditions including heart attack, clogged arteries, and heart failure.

J&J, which sells health products and prescription drugs, has been on the prowl for acquisitions in 2022 under new CEO Joaquin Duato, who has said that beefing up the firm’s medical-device unit through contracts was a top priority.

J&J, based in New Brunswick, N.J., has been trying to raise sales growth of its medical-device unit, especially as it prepares to separate its business selling Listerine, Tylenol, and other consumer-health products.

Danvers, Mass.,-based Abiomed is in one of the fastest-growing areas of the medical device industry. The firm’s sales rose 22% last year to $1.03 billion.

J&J’s medical-device arm, which sells contact lenses, artificial lenses, and surgical products, had sales of $27.06 billion in 2021, up 18% from 2020. Sales rebounded from the COVID-19 pandemic, and in previous years the firm’s medical device unit has had moderate growth and sometimes sale decline.


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