Johnson & Johnson (NYSE:JNJ) closed its $30 billion buy of Swiss biotech firm Actelion, the company reported today. The US healthcare giant bought Actelion in an all-cash deal for $280 per share.
The acquisition is expected to add $1.3 billion in sales for Johnson & Johnson in 2017, according to the company.
“We are very pleased to complete this compelling transaction and look forward to the value it will create for Johnson & Johnson and for patients around the world suffering from pulmonary arterial hypertension and other serious illnesses,” Johnson & Johnson chairman & CEO Alex Gorsky said in prepared remarks. “Adding Actelion to our already strong pharmaceutical business expands our portfolio with leading, differentiated in-market medicines and promising late stage products. We are excited to welcome our new Actelion colleagues to the Johnson & Johnson Family of Companies as we work together to improve the health of people around the world.”
“Through this transaction, Janssen will establish a 6th therapeutic area that will be a growth engine for us as our combined team builds on the market-leading position of Actelion’s therapies,” Joaquin Duato, exec VP & worldwide chairman of pharmaceuticals, added. “Actelion’s PAH franchise, including differentiated, innovative medicines Opsumit, Uptravi and Tracleer expands our Janssen business and provides a leading commercial position in an established area of transformational medical innovation for patients with serious illnesses and significant unmet medical needs.”
In connection with the deal, Actelion spun off its drug discovery arm and early-stage clinical development candidates into a new biopharmaceutical company, Idorsia (SIX:IDIA). Shares began trading on the SIX Swiss Exchange today.
A Johnson & Johnson subsidiary will initially hold nearly 10% of Idorsia shares and also has the right to another 22% of Idorsia’s outstanding equity through a convertible note.
Shares in Idorsia jumped nearly 30% after its market debut at 10 Swiss francs apiece today, valuing the company at more than 1.5 billion Swiss francs or $1.54 billion.
The newly-formed company launched with $1 billion in cash and 9 investigational candidates in early to mid-phase trials for diseases such as insomnia and hypertension.
“We’re going to develop a commercial structure as quickly as possible,” chief executive Jean-Paul Clozel reportedly said.
Material from Reuters was used in this report.