Johnson & Johnson Expands Cardiovascular Portfolio, Bets $16B In Abiomed's Heart Failure Devices

  • Johnson & Johnson JNJ has agreed to acquire Abiomed Inc ABMD for an upfront payment of $380.00 per share in cash, corresponding to an enterprise value of approximately $16.6 billion. 
  • Abiomed shareholders will also receive a non-tradeable contingent value right (CVR), entitling the holder to receive up to $35.00 per share in cash if certain commercial and clinical milestones are achieved. 
  • The transaction broadens Johnson & Johnson MedTech's (JJMT) position in cardiovascular offerings.
  • Abiomed offers Impella heart pumps for patients with severe coronary artery disease requiring high-risk PCI (percutaneous coronary intervention), treatment of AMI (acute myocardial infarction), cardiogenic shock, or right heart failure.
  • Johnson & Johnson expects the transaction to be slightly dilutive to neutral to adjusted EPS in the first year, and then accretive by approximately $0.05 in 2024, and increasingly accretive after that.
  • The transaction is expected to be completed by Q1 of 2023.
  • Abiomed reported Q2 sales of $265.92 million, up 11% Y/Y, missing the consensus of $273.53 million.
  • The company posted an adjusted EPS of $1.30, 26%, above the consensus of $1.04.
  • Price Action: ABMD shares are up 51.2% at $381.07 on the last check Tuesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsLarge CapM&ANewsHealth CareMoversTrading IdeasGeneralBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!