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

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

How can we help you?

We're easy to reach