Johnson & Johnson (J&J) has announced it will acquire Abiomed in a deal worth $16.6bn to broaden its cardiovascular technologies portfolio.
The transaction will boost J&J’s MedTech as a cardiovascular innovator, advancing the standard of care in one of healthcare’s largest unmet needs, heart failure and recovery, the company said in a statement.
Cardiovascular disease, including heart disease and stroke, is the world’s leading cause of death, resulting in 18.6 million global deaths each year, according to the World Heart Federation.
The acquisition will grant J&J access to Abiomed’s Impella heart pumps, a breakthrough technology with exclusive approvals from the US Food and Drug Administration for patients with severe coronary artery disease requiring high-risk percutaneous coronary intervention, treatment of acute myocardial infarction cardiogenic shock, or right heart failure.
Under the terms of the definitive agreement, J&J will acquire through a tender offer all outstanding shares of Abiomed for an upfront payment of $380 per share in cash. Abiomed shareholders will also be entitled to receive up to $35 per share in cash if certain commercial and clinical milestones are achieved.
“The addition of Abiomed is an important step in the execution of our strategic priorities and our vision for the new J&J focused on pharmaceutical and MedTech,” said Joaquin Duato, chief executive officer of J&J.
He continued: “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.”
The transaction, which was unanimously approved by both companies’ board of directors, is expected to be completed by the end of the first quarter of 2023.
Also commenting on the acquisition, Michael Minogue, Abiomed’s chairman, president and chief executive officer, said: “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.
“This transaction partners us with an organisation that shares our patients-first mindset and creates immediate value for our patients, customers, employees and shareholders. It will enable us to leverage J&J global scale, commercial strength and clinical expertise to accelerate our mission of making heart recovery the global standard of care.”