Johnson & Johnson just acquired a new heart device maker.
👉 Background: Johnson & Johnson was founded in 1886, and it develops medical devices, pharmaceuticals, and consumer goods. It is one of the world's most valuable companies, worth around $446b USD.
👉 What happened: Last year, Johnson & Johnson decided to sell its consumer division to go all-in on its other business areas, including medical devices. And now, it’s acquired Abiomed, a heart device maker, in a deal worth around $17 billion USD.
👉 What else: Johnson & Johnson will have to fork out 51% more than Abiomed’s share price before the deal was announced - but they will enjoy Abiomed’s $1 billion in annual revenue.
💡Start preparing for your next feast - right after your last. Johnson & Johnson is well and truly flush with cash right now thanks to its COVID vaccine sales.
💡 As a result, Johnson & Johnson can afford to buy other companies… especially while valuations are relatively low. Heart disease is the leading cause of death globally so it makes sense to allocate capital to a heart disease treatment.
💡And they aren’t the only ones. Johnson & Johnson’s rival Pfizer (also flush with cash), plans to launch 19 new products over the next 18 months.
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