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Tuesday, November 1, 2022

J&J to buy Abiomed in $16.6B deal to boost cardiovascular business

 Johnson & Johnson said on Tuesday it will acquire Abiomed Inc in a deal valued at $16.6 billion to boost the health care conglomerate's cardiovascular devices business.

The upfront payment of $380 per share represents a 50.7% premium to Abiomed's last closing price. Shares of Abiomed surged 48% in premarket trade.

Abiomed shareholders will also get a non-tradeable contingent value right entitling the holder to receive up to $35 per share in cash if certain commercial and clinical milestones are achieved.

The transaction broadens J&J's MedTech as a cardiovascular innovator, advancing the standard of care in one of healthcare's largest unmet need, heart failure and recovery, the company said.

The deal comes at a time when J&J is spinning off its consumer health business to focus on its pharmaceuticals and medical devices operations.

https://www.foxbusiness.com/markets/jj-buy-abiomed-16-6b-deal-boost-cardiovascular-business

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