Nov 1 (Reuters) – Johnson & Johnson (JNJ.N) stated on Tuesday it is going to purchase Abiomed Inc (ABMD.O) in a deal valued at $16.6 billion to spice up the healthcare conglomerate’s cardiovascular gadgets enterprise.
The upfront cost of $380 per share represents a 50.7% premium to Abiomed’s final closing value. Shares of Abiomed surged 48% in premarket commerce.
Abiomed shareholders may even get a non-tradeable contingent worth proper entitling the holder to obtain as much as $35 per share in money if sure industrial and medical milestones are achieved.
The transaction broadens J&J’s MedTech as a cardiovascular innovator, advancing the usual of care in certainly one of healthcare’s largest unmet want, coronary heart failure and restoration, the corporate stated.
The deal comes at a time when J&J is spinning off its client well being enterprise to give attention to its prescription drugs and medical gadgets operations.
Reporting by Raghav Mahobe and Leroy Leo in Bengaluru; Enhancing by Shounak Dasgupta
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