Johnson & Johnson, a leading medical device company, has recently announced its acquisition of Laminary. The privately held medical device company was acquired for an upfront payment of $400 million.
Revised Full-Year Profit Outlook
In light of this deal, Johnson & Johnson has revised its full-year adjusted profit outlook. The company now expects a reduction in earnings next year by approximately 15 cents per share. Consequently, the target for adjusted earnings in 2023 has been adjusted to $9.90 to $9.96 per share, with operational adjusted earnings projected at $9.85 to $9.91 per share.
The revision in earnings is due to an in-process research-and-development charge associated with the acquisition.
Laminary’s Focus and Implications
Laminary specializes in the treatment of non-valvular atrial fibrillation (AFib) by eliminating the left atrial appendage. With around 38 million individuals worldwide suffering from AFib, the acquisition of Laminary by Johnson & Johnson holds significant implications. AFib patients are five times more likely to experience a stroke, making this a crucial area of focus for J&J.
Integration with J&J MedTech
Laminary will become part of the Biosense Webster business under J&J MedTech’s umbrella. The Biosense Webster business primarily focuses on cardiac arrhythmia treatments. In addition to the upfront payment of $400 million, there may also be additional clinical and regulatory milestone payments associated with the acquisition.
