Johnson & Johnson has begun a deal to acquire Abiomed for upfront payment of $380 per share, valuing the deal at about $16.6 billion.
 
The transaction will expand J&J’s position as a cardiovascular innovator with Abiomed’s first-in-kind portfolio to treat coronary artery disease and heart failure.
 
“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 told the press. “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.”
 
“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,” added Ashley McEvoy, executive VP and worldwide chairman of MedTech at Johnson & Johnson. “We are committed to investing for growth and look forward to welcoming the talented team and working together to foster our shared patient-first mindset and winning culture of innovation.”
 
Abiomed’s Impella heart pumps—which have exclusive FDA approvals for coronary artery disease patients needing high-risk PCI (percutaneous coronary intervention), treatment of AMI (acute myocardial infarction) cardiogenic shock, or right heart failure—will complement J&J’s Biosense Webster electrophysiology business.
 
Abiomed earned FDA approval for its Impella RP Flex with SmartAssist to treat right heart failure earlier this week.
 
“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,” said Michael R. Minogue, Abiomed’s chairman, president, and CEO. “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.”
 
Following the deal’s completion, Abiomed will beome a standalone business within J&J MedTech. The transaction is expected to be completed before the end of the first quarter of 2023.