Johnson & Johnson to purchase heart pump maker Abiomed for $16.6bn

Johnson & Johnson (J&J) has agreed to acquire Abiomed, a NASDAQ-listed cardiovascular medical technology provider, in an all-cash deal valued at approximately $16.6 billion.

The proposed acquisition is expected to further diversify and expand Johnson & Johnson MedTech (JJMT) portfolio into the heart failure and recovery segment through Abiomed’s Impella heart pump platform.

Joaquin Duato — Johnson & Johnson CEO said: “The addition of Abiomed is an important step in the execution of our strategic priorities and our vision for the new Johnson & Johnson focused on Pharmaceutical and MedTech.

“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 deal will also complement JJMT’s portfolio that includes Biosense Webster electrophysiology business, and fast-track JJMT’s entry into high-growth markets.

Johnson & Johnson to acquire heart pump maker Abiomed for $16.6bn

Michael R Minogue — Abiomed Chairman, President and CEO 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.”

As part of the transaction, Abiomed stockholders will receive an upfront payment of $380 per share in cash, along with a non-tradeable contingent value right (CVR) that entitles them to up to an additional $35 per share in cash up on the successful achievement of certain clinical and commercial milestones.

Abiomed will operate as a standalone business within Johnson & Johnson MedTech following the completion of the transaction.

Cravath, Swaine & Moore is serving as legal advisor to Johnson & Johnson and J.P. Morgan Securities is acting as financial advisor.

Sullivan & Cromwell is acting as legal advisor to Abiomed and Goldman Sachs & Co.  is serving as financial advisor.

Expected to be completed prior to the end of the first quarter of 2023, the transaction is subject to the tender of a majority of Abiomed’s shares, applicable regulatory approvals, and other customary closing conditions.