Of late Johnson & Johnson has been very active in the M&A sector. A significant portion of its earnings have been derived from acquired products.
Bloomberg has reported citing sources familiar with the matter at hand, that Johnson & Johnson has approached Swiss biotechnology company Actelion Ltd for a potential takeover.
Although the deliberations are still reportedly at an early stage, Actelion is working with an adviser to explore its options.
Earlier this year, Johnson & Johnson’s CEO, Alex Gorsky had said, the company was interested in expanding its consumer, medical devices and pharmaceutical segments.
In recent years, J&J has derived nearly half of its revenues from acquired products.
This September, Johnson & Johnson agreed to acquire Abbott Laboratories’ eye care business for almost $4.33 billion.
With the news of this proposed acquisition hitting the market, Actelion shares surged by 13%, thus valuing it at $17 billion.
This October, Actelion had raised its profit earning guidance for the third time this year, as sales from its Opsumit and Uptravi, its new drugs which treat pulmonary arterial hypertension, surpassed those of Tracleer, its decade-long mainstay that lost U.S. patent protection in November 2015.
While Actelion declined to comment, Johnson & Johnson did not respond to a request for comment.
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