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.
