Johnson & Johnson to Acquire Abiomed for $16.6 Billion

Johnson & Johnson and Danvers-based Abiomed have entered into a definitive agreement under which J&J will acquire all outstanding shares of Abiomed, for an upfront payment of approximately $16.6 billion. Abiomed shareholders will also receive up to $35 per share in cash if certain commercial and clinical milestones are achieved. The transaction was unanimously approved by both companies’ boards of directors.

Abiomed is a leading provider of medical technology that provides circulatory support and oxygenation, with products designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart. The transaction broadens Johnson & Johnson MedTech’s position as a growing cardiovascular innovator, advancing the standard of care in one of healthcare’s largest unmet need disease states: heart failure and recovery. Cardiovascular disease is the number one cause of death. All forms of cardiovascular disease lead to heart failure, which is a significant cost to health systems due to hospitalizations and extended length of stay.

According to Ashley McEvoy, Executive Vice President and Worldwide Chairman of MedTech at Johnson & Johnson, “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.” (Source: Abiomed Website, 01 November, 2022)