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Johnson & Johnson completes $16.6 billion acquisition of cardiac pump maker Abiomed

by John R. Fischer, Senior Reporter | December 27, 2022
Business Affairs Cardiology
Johnson & Johnson completes acquisition of Abiomed.
Johnson & Johnson has completed its acquisition of Abiomed, paying approximately $16.6 billion for the company, which will operate as a stand-alone business in J&J’s MedTech segment and become one of its 12 priority platforms with annual sales of at least $1 billion each.

A cardiac pump manufacturer, Abiomed has a pipeline of lifesaving technologies, including its Impella heart pump, a breakthrough technology with exclusive FDA approvals for treating severe coronary artery disease that requires high-risk percutaneous coronary intervention, acute myocardial infarction, cardiogenic shock, or right heart failure.

The deal was completed on December 22 through a merger of Athos Merger, a wholly-owned subsidiary of J&J, with and into Abiomed. Athos Merger will, as promptly as practicable, pay for all tendered shares at a value of $380 per share in cash and including cash acquired. It will also pay a non-tradeable contingent value right that allows shareholders to receive an additional $35 per share upon achieving certain commercial and clinical milestones.

Following the transaction’s completion, Abiomed’s common stock ceased trading on NASDAQ.

“The completion of this acquisition allows Johnson & Johnson MedTech to expand our portfolio in the high-growth cardiovascular markets, adding solutions for heart recovery to our global market leading Biosense Webster electrophysiology business,” said Ashley McEvoy, executive vice president and worldwide chairman of MedTech at Johnson & Johnson, in a statement.

J&J announced the acquisition in November 2022, and said then that it expected to complete the deal before the end of Q1 2023.

Abiomed offers an 18-year track record of profitable growth as well as significant opportunities in indication, geography and product for heart failure and recovery. J&J will combine its physician education resources, commercialization capabilities and clinical expertise with those of Abiomed to speed up access to and adoption of its technologies. It expects the new addition to accelerate pro forma MedTech and J&J enterprise revenue growth and to be increasingly accretive in the years that follow.

Abiomed already has R&D programs and multiple randomized controlled trials underway to establish Class I clinical guidelines for expanding access to Impella.

As part of the agreement, Andrew Greenfield, chief commercial officer for Abiomed, will succeed Michael Minogue as president. Michel Bodner, the worldwide president of J&J’s Biosense Webster Electrophysiology business, will manage the integration.

The transaction was financed through cash and short-term financing.

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