In the last week Johnson & Johnsons has unveiled the biggest deal in its 130-year history with the acquistion of Actelion in a $30 bilion deal. The negotiations have restared at the end of December (read here the news), after that the deal was called off in mid-December.

The U.S.-based health care products giant with this acquisition tries to revive its pharmaceuticals division gaining  access to rare disease treatments and drugs which treat life-threatening pulmonary arterial hypertension. Actelion products include Tracleer, an oral treatment sold in 60 markets.

Thanks to this acquisition, Johnson & Johnsons will diversify its portfolio just as its biggest product, Remicade for arthritis, faces competion by  cheaper “biosimilar” launched by rivals. 

The offer to  pay $280 per share  has been commented by Zurich-based trader: “The price  is quite high at around 30 times price to estimated 2018 earnings. J&J is paying a lot and R&D is not even included, just a substantial minority stake,” 

Indeed the  Actelion’ s R&D unit  will become  a standalone company based and listed in Switzerland under the name R&D NewCo  and run by Mr Clozel. J&J will own 16 percent of the business and have rights to an additional 16 percent. Furthermore J&J will also get an option on ACT-132577, a product  being developed for resistant hypertension and now in phase 2 clinical development.

The Actelion deal, approved unanimously by the boards of both companies, is to be completed in the second quarter, pending regulatory approvals, and J&J said it expects the deal to immediately boost revenues and earnings per share.

Source:  Financial Times