Abbott is buying medical device maker St Jude Medical in a deal worth around $25 billion.
Under the terms of the deal, St Jude Medical shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock, representing a total consideration of around $85 per share. At an Abbott stock price of $43.93, this equates to a total transaction equity value of $25 billion.
According to the companies, the move will create “a premier medical device leader with top positions in high-growth cardiovascular markets, including atrial fibrillation, structural heart and heart failure as well as a leading position in the high-growth neuromodulation market”.
With combined annual sales of approximately $8.7 billion, Abbott’s cardiovascular business and St. Jude Medical will hold the No. 1 or 2 positions across large and high-growth cardiovascular device markets and will compete in nearly every area of the market – with an aggregate market opportunity of $30 billion.
“Bringing together these two great companies will create a premier medical device business and immediately advance Abbott’s strategic and competitive position,” said Miles White, chairman and chief executive at Abbott. “The combined business will have a powerful pipeline ready to deliver next-generation medical technologies and offer improved efficiencies for health care systems around the world.”
The acquisition is expected to be accretive to Abbott’s adjusted earnings per share in the first full year after closing and increasing thereafter, with around $0.21 of accretion in 2017 and $0.29 cents in 2018. The combination is also anticipated to result in annual pre-tax synergies of $500 million by 2020.
By Selina McKee
Source: Pharma Times
Giovanni Caforio, the former CEO of Bristol Myers Squibb, is set to become the next board chairman of Novartis, which on Tuesday proposed the pharmaceutical industry veteran as its pick to replace Joerg Reinhardt in the role next year. Reinhardt has served as Novartis’ chair since 2013 and plans to retire when his 12-year term ends in 2025.
GE HealthCare has raised the curtain on two ultrasound systems equipped with artificial intelligence programs designed to assist in diagnosing conditions in women’s health, including obstetric exams. The Voluson Signature 20 and 18 imaging systems include AI tools capable of automatically identifying and annotating measurements of fetal anatomy.
Scientists from the University of Edinburgh’s School of Chemistry have revealed a new sustainable method of manufacturing complex molecules that could reduce waste produced during drug production. The method published in Nature Chemistry could help to prevent severe side effects caused by drugs that can exist as enantiomers.
