Health and Healthcare
Huge Johnson & Johnson Acquisition Targets Robotics
Published:
Last Updated:
On Wednesday, Johnson & Johnson (NYSE: JNJ) announced that its subsidiary, Ethicon, had entered a definitive agreement to acquire Auris Health, a robotic technology firm, initially focused on lung cancer.
Management believes this acquisition will accelerate Johnson & Johnson’s entry into robotics, with potential for growth and expansion into other interventional applications.
Under the terms of the agreement, Ethicon is acquiring Auris for approximately $3.4 billion in cash. Additional contingent payments of up to $2.35 billion, in the aggregate, may be payable upon reaching certain predetermined milestones.
Johnson & Johnson is creating a connected digital ecosystem centered around using data to improve patient outcomes that leverages world-class robotic technology. This ecosystem will empower patients to take charge of their health, guide surgeons through procedures and help them advance their skills and enable health care systems to deliver more consistent procedures while also managing costs.
The transaction is expected to close by the end of the second quarter of 2019.
Ashley McEvoy, executive vice president and worldwide chair of Johnson & Johnson’s Medical Devices unit, commented:
In this new era of health care, we’re aiming to simplify surgery, drive efficiency, reduce complications and improve outcomes for patients, ultimately making surgery safer. We believe the combination of best-in-class robotics, advanced instrumentation and unparalleled end-to-end connectivity will make a meaningful difference in patient outcomes.
Shares of Johnson & Johnson were last seen trading at $134.61, in a 52-week range of $118.62 to $148.99. The consensus analyst price target is $144.22.
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
