There is a lot to like about the human arsenal, but if we are being honest, it doesn’t have anything more valuable than our tendency to grow on a consistent basis. This tendency, in particular, has allowed us to hit upon some huge milestones, with technology appearing as a major member of the stated squad. The reason why technology enjoys such an esteemed stature among people is largely down to its skill-set, which ushered us towards all the possibilities we couldn’t have imagined otherwise. Nevertheless, a closer look would reveal how the whole runner was also inspired by the way we utilized those skills across a real-world environment. The latter component was, in fact, what gave the creation a spectrum-wide presence, including a timely appearance on our healthcare block. Technology’s foray into healthcare was perfectly-timed as it came right when the sector was beginning to struggle against its obsolete structure. This reality, fortunately enough, went through a complete overhaul under the new regime, but even after achieving such a monumental feat, the new and budding medtech concept will somehow continue bringing all the right goods to the table. The same has only gotten more and more evident over the recent past, and truth be told, a new acquisition can solidify that trend moving forward.
Johnson & Johnson, one of the world’s biggest medical device makers, is officially set to acquire Abiomed Inc. for a sum of $17.3 billion. According to certain reports, J&J will shell out $380 for every outstanding Abiomed share, a figure that roughly represents 50% premium on the company’s closing stock price. Beyond that, the latter’s shareholders are also granted a non-tradeable contingent value right (CVR), which makes them entitled to receive another $35 per share, assuming all the laid out commercial and clinical milestones are achieved. Talk about why J&J would pick Abiomed, the Danvers, Massachusetts-based company is actually a leading, first-to-market provider of cardiovascular medical technology. Hence, having it in your corner gives you total access to its first-in-kind portfolio for the treatment of coronary artery disease and heart failure. This, of course, includes company’s famous Impella® heart pumps, a breakthrough technology with exclusive FDA approvals for patients who are suffering from severe coronary artery disease, and consequentially, require high-risk PCI (percutaneous coronary intervention). To top of its technological prowess, Abiomed also has a great commercial track record, considering the company boasts an 18-year long profitable growth streak. Putting further context into play here, as of September 2022, the medtech player had over $937 million in cash and no debt whatsoever.
“Abiomed’s skilled workforce and strong relationships with clinicians, along with its innovative cardiovascular portfolio and robust pipeline, complement our MedTech portfolio, global footprint and robust clinical expertise. Together, we have the incredible opportunity to bring lifesaving innovations to more patients around the world,” said Ashley McEvoy, Executive Vice President and Worldwide Chairman of MedTech at Johnson & Johnson. “We are committed to investing for growth and look forward to welcoming the talented team and working together to foster our shared patient-first mindset and winning culture of innovation.”
Set to be completed by the first quarter of 2023, the acquisition will be funded through a combination of cash and short-term financing.
