Johnson & Johnson on Tuesday announced plans to acquire Abiomed, which develops technologies to support the heart, lungs and kidneys, in a deal worth more than $16 billion.
WHY IT IMPORTANT
According to Johnson & Johnson, the purchase will help raise the standard of care in heart failure and recovery worldwide.
Abiomed will operate as a standalone business within Johnson & Johnson MedTech, becoming one of dozens of the company’s “priority platforms,” defined by annual sales of at least $1 billion.
With all forms of cardiovascular disease – the number one cause of death – leading to heart failure and prolonged hospitalization, the addition of breakthrough treatments such as Abiomed has helped Johnson & Johnson deliver solutions to a one of the health care industry’s greatest unmet needs.
The Impella heart pump of the company Danvers, based in Massachusetts, USA has received the sole approval of the US Food and Drug Administration for patients with severe coronary disease requiring coronary intervention. High-risk percutaneous (stent) treatment for people with acute myocardial infarction (heart attack) in cardiogenic shock or right-sided heart failure.
“Abiomed’s highly skilled workforce and strong relationships with clinicians, coupled with its portfolio,” said Ashley McEvoy, executive vice president and global president of MedTech at Johnson & Johnson. Innovative cardiovascular and pipeline investments complement our MedTech portfolio, global footprint and strong clinical expertise.” notice.
As the first provider of cardiovascular health technology to market with 18 years of profitable growth, Abiomed offers the world’s largest healthcare products company the opportunity to expand significantly in one of its segments. fastest growing medical technology segment.
Johnson & Johnson will acquire the company through a public tender for all outstanding shares with an upfront payment of $380 per share in cash – an approximate enterprise value of $16.6 billion, including cash buyback. Abiomed shareholders will also receive a non-tradable reserve value right to receive up to $35 per share in cash if certain commercial and clinical milestones are met.
“Together, we have the incredible opportunity to bring life-saving innovations to more patients around the world,” said McEvoy.
TREND TO BIGGER WOMAN
Detecting heart disease earlier and reducing mortality has inspired many healthcare organizations to research and fund breakthrough technologies.
That’s because heart disease is the number one killer in the world, Dr Waqaas Al-Siddiq, CEO of Biotricity, said in a chat earlier this week about remote heart and kidney monitoring.
Chronic illness is also “the number one cost to the health care system because patients are diagnosed late and their condition requires them to be in and out of the hospital frequently,” he said.
From artificial intelligence-based tools like remote patient diagnosis and monitoring technology that speed up the identification of atherosclerosis, the leading cause of heart disease, digital health companies must have the right size, cost, and quality to stand out in a crowded market.
ON PROFILE
“This transaction partners us with an organization that shares our patient-first mindset and creates instant value for our patients, customers, employees and shareholders. It will give allows us to leverage Johnson & Johnson’s global scale, commercial strength and clinical expertise to accelerate our mission,” said Michael R. Minogue, president, president and chief executive officer of Abiomed.
Andrea Fox is the senior editor of Healthcare IT News.
Email: [email protected]
Healthcare IT News is a HIMSS publication.
