Johnson & Johnson announced it was acquiring all outstanding shares of Abiomed for $16.6 billion to expand Abiomed’s cardiovascular technologies and increase patient access.
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Johnson & Johnson is acquiring all outstanding shares of Abiomed for $16.6 billion, the company announced Tuesday. The deal has been unanimously approved by the boards of directors of both companies.
J&J will acquire all outstanding shares of Abiomed for $380 per share, which it plans to finance through a combination of cash and debt. Both companies expect to close the acquisition early next year.
Under the terms of the agreement, Abiomed shareholders will be offered a one-time, non-tradeable contingent value right (CVR). This will entitle all stockholders to up to $35 more per share in cash, contingent upon the achievement of several clinical and commercial milestones.
These milestones include reaching net sales for Abiomed products exceeding $3.7 billion during J&J’s fiscal second quarter of 2027 through the fiscal first quarter of 2028, which will trigger an additional payment of $17.50 per share.
Meanwhile, if the FDA approves premarket application for the use of Impella products in STEMI patients without cardiogenic shock on or before January 1, 2028, shareholders will receive $7.5 more per share that they own.
J&J pledged another $10 per share, upon the publication of a Class I recommendation for Impella products in certain high-risk patients.
“The acquisition deal with J&J is a testament to the value of the company’s Impella heart pump platform and other pipeline programs,” said Michael R. Minogue, chairman, president and CEO of Abiomed in a statement.
In reaction to the buyout, Abiomed’s stocks grew 52% pre-market Tuesday.
Expanding the MedTech Footprint
Abiomed is a medical device company focused on circulatory support and oxygenation based in Danvers, Mass. The company’s flagship product line is Impella, a family of heart pumps that help the heart deliver blood and oxygen to different parts of the body, allowing the organ to rest and recover from heart failure and other conditions.
Tuesday’s acquisition will give J&J access to this line of devices, allowing the company to establish and fortify its presence in the cardiovascular diseases space.
“One of the strategic priorities we outlined at the beginning of the year was to drive MedTech to become a best-in-class performer,” a company spokesperson told BioSpace. “The acquisition of Abiomed is in line with this objective and will help J&J accelerate revenue growth while also forging better technological advancements.”
There are financial considerations as well, the J&J spokesperson added.
“We strongly view the financial returns to be compelling and value accretive to our shareholders,” the spokesperson said.
Abiomed’s line of heart failure devices will also complement J&J’s existing MedTech products, particularly the imaging, catheter and radiofrequency generator products under its Biosense Webster electrophysiology business.
The agreement stands to benefit from J&J’s large global footprint and operations, taking advantage of its existing physician education programs and commercialization capacities to more efficiently deliver Abiomed’s cardiovascular technologies to more patients.
Beyond product access, the acquisition will also provide J&J with a robust pipeline of R&D programs in the cardiovascular disease space, as well as several ongoing trials seeking to expand approvals for Impella.
