LONDON (ShareCast) - (Sharecast News) - Johnson & Johnson said on Tuesday that it has agreed to buy heart recovery specialist Abiomed in a $16.6bn deal.
Under the terms of the transaction, J&J will make an upfront payment of $380.00 per share. Abiomed shareholders will also receive a non-tradeable contingent value right (CVR) entitling the holder to receive up to $35.00 per share in cash if certain commercial and clinical milestones are achieved.

J&J said the deal broadens the position of its MedTech business as a growing cardiovascular innovator, advancing the standard of care in one of healthcare's largest unmet need disease states: heart failure and recovery. The company noted that cardiovascular disease is the number one cause of death.

Chief executive officer Joaquin Duato said: "The addition of Abiomed is an important step in the execution of our strategic priorities and our vision for the new Johnson & Johnson focused on Pharmaceutical and MedTech.

"We have committed to enhancing our position in MedTech by entering high-growth segments. The addition of Abiomed provides a strategic platform to advance breakthrough treatments in cardiovascular disease and helps more patients around the world while driving value for our shareholders."

Based in Danvers, Massachusetts, Abiomed is a provider of medical technology that provides circulatory support and oxygenation. The company's products are designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart.

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