J&J subsidiary acquires Auris Health for $3.4B

New Brunswick-based Johnson & Johnson announced Wednesday its subsidiary Ethicon Inc. has agreed to acquire Auris Health Inc., a developer of robotic technology, for $3.4 billion.

The deal, Johnson & Johnson said, will accelerate its entry into robotics, boost its expertise in surgical approaches and have the potential to expand into other interventional applications.

“In this new era of health care, we’re aiming to simplify surgery, drive efficiency, reduce complications and improve outcomes for patients, ultimately making surgery safer,” Ashley McEvoy, executive vice president, worldwide chairman, medical devices, Johnson & Johnson, said. “We believe the combination of best-in-class robotics, advanced instrumentation and unparalleled end-to-end connectivity will make a meaningful difference in patient outcomes.”

Under the deal, Frederic Moll, CEO and founder of Auris Health, will be joining Johnson & Johnson.

“We’re thrilled to be joining Johnson & Johnson to help push the boundaries of what is possible in medical robotics and improve the lives of patients across the globe. Together, we will be able to dramatically accelerate our collective product innovation to develop new interventional solutions that redefine optimal patient outcomes,” Moll said.

The deal is expected to close by the end of the second quarter of 2019.