The Group is expanding its heart disease treatment technology business.
(Photo: Reuters)
new York The US healthcare group Johnson & Johnson wants to take over the medical technology company Abiomed for 16.6 billion dollars. The group announced on Tuesday that it would pay $380 per Abiomed share. An additional $35 per share would be paid in cash upon the achievement of certain financial and clinical milestones.
Abiomed develops technologies to treat coronary artery disease and heart failure. These include Impella heart pumps, which are used in patients with severe heart disease. J&J hopes the acquisition, which is expected to be completed early next year, will strengthen its medical technology division.
With Abiomed, J&J is adding a rapidly growing company to its portfolio. Revenue rose 22 percent to more than $1 billion in the last fiscal year. That’s well over double the annual sales that the company recorded five years ago.
Almost a year ago, J&J announced that it would focus more on medical devices and its largest business area, pharmaceuticals. The Consumer Health division, which sells plasters and cosmetics, will be separated. Upon completion of the transaction, Abiomed will operate as an independent company within J&J’s medical technology division.
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