Sector News

Abbott, St. Jude Medical plans to sell $1.1 Billion in assets

October 19, 2016
Life sciences

Abbott Laboratories and St. Jude Medical Inc., in the midst of a merger, said Tuesday they would sell certain businesses to Japanese medical-equipment maker Terumo Corp. for about $1.1 billion as the two American companies march toward completing their tie-up.

St. Jude Medical’s stock rose 1.3% to $78.66 in premarket trading, and Abbott shares were up 1.6% at $41.22.

The companies said they plan to sell a portion of their vascular closure and electrophysiology businesses to Terumo after the St. Jude Medical-Abbott transaction closes. No sale would occur if the planned merger were to fall apart.

The divestiture, an all-cash transaction, will include St. Jude Medical’s Angio-Seal and Femoseal vascular-closure products and Abbott’s Vado steerable sheath. Abbott will retain its vascular-closure products.

Abbott agreed in April to buy St. Jude Medical in a cash-and-stock transaction then valued at $25 billion, a way to bulk up its medical-devices business to better compete against rivals Medtronic PLC and Boston Scientific Corp. Abbott anticipates the deal closing by the end of the year.

By Joshua Jamerson

Source: Wall Street Journal

comments closed

Related News

September 25, 2022

Rise of the machines: Novo Nordisk pledges $200M to create first quantum computer for life sciences

Life sciences

Big Pharma has long seen the potential for AI and machine learning to accelerate drug development. But Novo Nordisk is going a step further by channeling $200 million toward the creation of a computer that will outrun anything in existence.

September 25, 2022

Mount Sinai AI uncovers new brain analysis method to predict dementia, Alzheimer’s disease

Life sciences

Current methods for diagnosing Alzheimer’s disease rely on a complex combination of self- and caregiver-reported symptoms, a physical examination and either a PET scan or a spinal tap to look for evidence of amyloid plaque build-ups in the brain. But a new artificial intelligence-based method may make the diagnostic process a much more objective one.

September 25, 2022

New AstraZeneca-backed report finds big money behind diverse owners and entrepreneurs in Europe

Life sciences

There is lots of talk about diversity and inclusion in business, including in pharma and medtech. A new report by the Open Political Economy Network (OPEN), a think tank focusing on migration and diversity, released its “Minority Businesses Matter: Europe” report highlighting the successes and challenges of ethnic minority-owned businesses in Europe.