J&J to Acquire Abiomed for $16.6 Billion

Johnson & Johnson (J&J) announced on Nov. 1, 2022 that they are acquiring Abiomed, a US-based medical technology provider specializing in circulatory support and oxygenation, for approximately $16.6 billion. The transaction is expected to close prior to the end of the first quarter of 2023.

Under the transaction, shareholders will be given $380.00 per share in cash, along with one non-tradable contingent value right that entitles them to up to an additional $35.00 per share in cash if certain clinical and commercial milestones are achieved.

According to a company press release, this transaction is designed to broaden J&J’s position in the medical technology field, especially as it concerns cardiovascular care. Abiomed is the owner of the Impella heart pump platform, a breakthrough technology with exclusive FDA approvals for patients with severe coronary artery disease requiring high-risk percutaneous coronary intervention, treatment of acute myocardial infarction, cardiogenic shock, or right-heart failure. In addition to the right to Impella, J&J will acquire Abiomed’s pipeline of upcoming therapies.

“The addition of Abiomed is an important step in the execution of our strategic priorities and our vision for the new Johnson & Johnson focused on Pharmaceutical and MedTech,” said Joaquin Duato, CEO, Johnson & Johnson, in the release. “We have committed to enhancing our position in MedTech by entering high-growth segments. The addition of Abiomed provides a strategic platform to advance breakthrough treatments in cardiovascular disease and helps more patients around the world while driving value for our shareholders.”

“We are pleased to have reached an agreement that reflects the remarkable value Abiomed created with our revolutionary Impella heart pump platform and promising pipeline,” said Michael R. Minogue, chairman, president, and CEO, Abiomed, in the release. “This transaction partners us with an organization that shares our patients-first mindset and creates immediate value for our patients, customers, employees, and shareholders. It will enable us to leverage Johnson & Johnson’s global scale, commercial strength, and clinical expertise to accelerate our mission of making heart recovery the global standard of care.”

Source: Johnson & Johnson