Johnson & Johnson will spend $16.6 billion to buy cardiovascular technology company Abiomed to strengthen its medical device division.
The health care giant said Tuesday that it will pay $380 for each Abiomed share and also provide another $35 per share in cash if some commercial and clinical milestones are met.
Abiomed develops technology that treats coronary artery disease and heart failure. That includes Impella heart pumps, which are used for patients with severe coronary artery disease.
J&J says the deal, which is expected to close early next year, will help the company build its medical device segment by entering a high-growth business.
J&J announced nearly a year ago, that it was turning its focus more to medical devices and its largest business, pharmaceuticals, by splitting off its consumer health division that sells Band Aids and beauty products.
Abiomed will run as a standalone business within J&J’s medical device segment once the deal is completed.
J&J will pay for the acquisition with a combination of cash and short-term financing. The company expects the deal to be neutral or slightly dilutive to adjusted earnings in the first year after its completion and then will start helping its bottom line in 2024.
Before you consider Johnson & Johnson, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Johnson & Johnson wasn't on the list.
While Johnson & Johnson currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Nuclear energy stocks are roaring. It's the hottest energy sector of the year. Cameco Corp, Paladin Energy, and BWX Technologies were all up more than 40% in 2024. The biggest market moves could still be ahead of us, and there are seven nuclear energy stocks that could rise much higher in the next several months. To unlock these tickers, enter your email address below.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.
