Heart disease kills more Americans than any other. It costs the US $219bn a year in healthcare services and lost productivity. Johnson & Johnson thinks there is money to be made in the cardiovascular field.
The healthcare giant is plunking down more than $16bn to buy Abiomed, which makes a heart pump used by patients with severe coronary artery disease. Bulking up is one way to fight slower growth when top-selling immunology drug Stelara loses patent protection next year. The premium on offer is enough to send J&J investors’ hearts racing healthily.
J&J’s $380 a share cash offer values Abiomed’s equity at around $17.3bn. The offer represents a 51 per cent premium to Abiomed’s closing price on Monday and nears the level the stock last traded at four years ago.