$16.6 Billion Deal: Johnson & Johnson Buys Danvers-Based Abiomed

DANVERS, MA — Danvers-based Abiomed, which develops heart, lung and kidney support technologies, will become part of Johnson & Johnson through a $16.6 billion deal announced on Tuesday.

An Abiomed statement said the 18-year-old North Shore medical technology company will continue to 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.

"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 Minogue, Abiomed's Chairman, President and Chief Executive Officer. "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 definitive agreement terms, Johnson & Johnson will acquire all outstanding shares of Abiomed, for an upfront payment of $380 per share in cash. Abiomed shareholders will also receive up to $35 per share in cash if certain commercial and clinical milestones are achieved.

"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," said Ashley McEvoy, Executive Vice President and Worldwide Chairman of MedTech at Johnson & Johnson. "Together, we have the incredible opportunity
to bring lifesaving innovations to more patients around the world.

"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."

The transaction was unanimously approved by both companies' boards of directors.

It is expected to be completed prior to the end of the first quarter of 2023.

(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. Twitter: @Scott_Souza.)