The transaction was unanimously approved by both companies’ boards of directors and is expected to be completed prior to the end of the first quarter of 2023.
Abiomed is a leading, first-to-market provider of cardiovascular medical technology with a first-in-kind portfolio for the treatment of coronary artery disease and heart failure. Abiomed operates in one of the fastest-growing medical technology segments, with significant expansion opportunities in indication, geography and product.
According to a news release, the transaction broadens Johnson & Johnson MedTech’s position as a growing cardiovascular innovator, advancing the standard of care in one of health care’s largest unmet need disease states: heart failure and recovery.
“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,” Joaquin Duato, CEO of Johnson & Johnson, said. “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.”
“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,” Michael Minogue, Abiomed’s chairman, CEO and president, said. “This transaction partners us with an organization that shares our patients-first mindset and creates immediate value for our patients, customers, employees and shareholders. It will enable us to leverage Johnson & Johnson’s global scale, commercial strength and clinical expertise to accelerate our mission of making heart recovery the global standard of care.”
Under the terms of the agreement, Abiomed stockholders will be offered an upfront payment of $380 per share in cash, which represents a 50.7% premium to Abiomed’s last closing price.
Johnson & Johnson expects to fund the transaction through a combination of cash on hand and short-term financing. Johnson & Johnson expects to maintain a strong balance sheet and to continue to support its stated capital allocation priorities of R&D investment, competitive dividends, value-creating acquisitions and strategic share repurchases.
Following the completion of the transaction, Abiomed will operate as a standalone business within Johnson & Johnson MedTech, becoming one of 12 JJMT priority platforms, as defined by annual sales of at least $1 billion each.
Minogue has an established succession plan to sustain a strong future and will assist in the transition.
Andrew Greenfield, who has 17 years with Abiomed, most recently serving as chief commercial officer, has been appointed president of Abiomed. Michael Bodner will lead the integration under Ashley McEvoy, executive vice president and worldwide chairman of MedTech at Johnson & Johnson. Bodner is a seasoned interventional cardiovascular executive with 15-plus years in the industry with Johnson & Johnson and Abbott Vascular, most recently serving as worldwide president of Johnson & Johnson’s global leading Biosense Webster Electrophysiology business.