Johnson & Johnson to acquire Abiomed

Johnson & Johnson, the world's largest, most diversified healthcare products company, and Abiomed, a world leader in breakthrough heart, lung and kidney support technologies, announced on 1 Nov 2022 that they have entered into a definitive agreement under which Johnson & Johnson will acquire through a tender offer all outstanding shares of Abiomed, for an upfront payment of $380.00/share in cash, corresponding to an enterprise value of approximately $16.6 bn which includes cash acquired. Abiomed shareholders will also receive a non-tradeable contingent value right (CVR) entitling the holder to receive up to $35.00/share in cash if certain commercial and clinical milestones are achieved. The transaction was unanimously approved by both companies' boards of directors. The transaction broadens Johnson & Johnson MedTech's (JJMT) position as a growing cardiovascular innovator, advancing the standard of care in one of healthcare's largest unmet need disease states: heart failure and recovery. Cardiovascular disease is the number one cause of death. All forms of cardiovascular disease lead to heart failure, which is a significant cost to health systems due to hospitalizations and extended length of stay. Abiomed is a leading, first-to-market provider of cardiovascular medical technology with a first-in-kind portfolio for the treatment of coronary artery disease and heart failure, an extensive innovation pipeline of life-saving technologies, and an 18-year track record of profitable growth. Abiomed operates in one of the fastest growing medtech segments with significant expansion opportunities in indication, geography, and product. Diversifies and expands JJMT's portfolio with a leadership platform in heart failure and recovery: Impella heart pumps - a breakthrough technology with exclusive FDA approvals for patients with severe coronary artery disease requiring high-risk percutaneous coronary intervention (PCI), treatment of acute myocardial infarction (AMI) cardiogenic shock, or right heart failure - will complement JJMT's portfolio, which includes the leading Biosense Webster electrophysiology business, and further accelerate JJMT's shift into high-growth markets. Benefits patients by advancing mission to make heart recovery the global standard of care: Johnson & Johnson's footprint, leading capabilities in physician education, commercial excellence, and robust clinical expertise will complement Abiomed's capabilities, accelerating access and adoption of these lifesaving technologies to more patients around the world. Expands market opportunity through a robust pipeline of technologies and clinical studies: This combination broadens Johnson & Johnson's position as a cardiovascular innovator by adding a world-leading portfolio in heart recovery - with innovative R&D programmes, exclusive FDA approvals, and multiple randomized controlled trials underway with the aim of achieving Class I clinical guidelines for Impella - to expand access to patient populations. The proposed transaction will accelerate pro forma MedTech and Johnson & Johnson enterprise revenue growth. Johnson & Johnson expects the transaction to be slightly dilutive to neutral to adjusted earnings/share in the first year, considering the impact of financing, and then accretive by approximately $0.05 in 2024, and increasingly accretive thereafter. Original source: Johnson & Johnson, website: http://www.jnj.com/, Copyright Johnson & Johnson Services Inc 2022.
mergers and acquisitions; health care products; Impella; medical devices; Abiomed; Johnson & Johnson; Johnson & Johnson MedTech [...]