Cardiology Business

J&J to Buy Abiomed in $16.6B Deal

Johnson & Johnson has struck a deal to buy Impella heart pump manufacturer Abiomed for $16.6B, expanding its cardiovascular care portfolio. 

Impella heart pumps — small devices that are threaded through arteries into the heart to help it move blood through the body – are Abiomed’s main revenue source. Abiomed’s products are stocked in all major US cardiovascular cath labs and nearly all heart transplant centers. 

The Details – J&J will pay $380 for each Abiomed share (a 50% stock premium) and will also shell out another $35 per share if certain commercial and clinical goals are met. 

J&J’s Expanding Interventional Portfolio – Abiomed joins a small but mighty group of interventional companies in J&J’s portfolio, including arrhythmia treatment company Biosense Webster and stroke solution company Cerenovus. 

A Strategic Decision – The purchase marks J&J’s first interventional cardiology acquisition since Biosense Webster in 1996, and its biggest overall acquisition in six years. Some have pointed out that J&J plans to spin off its consumer health unit next year, and Abiomed’s heart pump will likely boost its medical device division. 

The Interventional Cardiology Landscape – J&J’s $16.6B Abiomed acquisition wraps up what has already been an active year in interventional cardiology M&A, following Cordis’ purchase of MedAlliance ($1.35B) and Boston Scientific’s Baylis Medical acquisition ($1.7B). 

The Takeaway

J&J’s Abiomed acquisition should make it the undisputed leader of the heart pump segment, while fortifying its interventional cardiology portfolio ahead of its spin-off. The acquisition and Abiomed’s high premium are also reminders of what appears to be a hot M&A climate in the interventional cardiology space.

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