Categories AlphaGraphs, Health Care, Markets

Johnson & Johnson buys Auris Health to boost medical devices business

Establishing its foray into robotic health products, pharmaceutical giant Johnson & Johnson (JNJ) on Wednesday announced it was acquiring California-based Auris Health in a cash deal valued at approximately $3.4 billion.

Auris Health specializes in robotic technologies and has an FDA-approved platform used in bronchoscopic procedures. The addition of Auris Health is expected to boost Johnson & Johnson’s ailing medical devices unit, where sales declined 4% in the last reported quarter.

Johnson & Johnson CEO Alex Gorsky speaks on talc – Q4 2018 Earnings Preview (Credit: JNJ Media Center)

The latest acquisition will be complemented by the pharmaceutical giant’s partnership with Alphabet’s (GOOGL) Verily, which was inked in 2015 with an aim to develop surgical robots.

JNJ shares were slightly up during the morning trading hours. The stock has gained 3.4% during the prior 12-month period.

Worldwide Chairman, Medical Devices at Johnson & Johnson, Ashley McEvoy, said, “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.”

Founder and CEO of Auris Health Frederic Moll will join Johnson & Johnson upon the completion of this transaction.

“This combination is a testament to the incredible work of the Auris Health team and the innovation engine behind the Monarch Platform, which represents a huge step forward in endoluminal technology,” Dr Moll said.

The transaction is expected to close by the end of the second quarter of 2019.

J&J fourth quarter 2018 earnings infographic

Follow our Google News edition to get the latest stock market, earnings, and financial news at your fingertips 

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

2 thoughts on “Johnson & Johnson buys Auris Health to boost medical devices business

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment

Viewing Highlight