Johnson and Johnson (NYSE:JNJ) has agreed to acquire Swiss biotech firm Actelion for $30 billion in an all-cash deal.
The American healthcare giant will pay $280 for each share and plans to spin-off Actelion's R&D unit into a separate business listed in Switzerland. This new company will be led by Actelion's CEO and founder Jean-Paul Clozel, and Johnson and Johnson will hold a minority stake in it. The transaction is expected to close by the end of the second quarter of this year.
Actelion's pulmonary arterial hypertension drugs are complementary to Johnson and Johnson's Janssen Pharmaceuticals' portfolio, and the new research company will increase the latter's investment in the development of new drugs.
"Actelion has built an attractive, growing business with world-class commercial and clinical development capabilities," said Alex Gorsky, chairman and chief executive officer of Johnson & Johnson, in a statement. "Adding Actelion's portfolio to our already strong Janssen Pharmaceuticals business is a unique opportunity for us to expand our portfolio with leading, differentiated in-market medicines and promising late-stage products."
The chairman of Actelion's board, Jean Pierre Garnier, who will stay on as chairman of the new R&D unit, said, "Jean-Paul Clozel and I have high expectations for this new, well-funded biotech company with a significant portfolio of drugs in the clinic. R&D NewCo will be led by an experienced and proven scientific team."
Johnson and Johnson expects the deal to be immediately accretive to its adjusted EPS and accelerate its revenue and earnings growth rates. Long-term revenue growth rate is expected to increase by at least 1.0% and its long-term earnings growth rate by 1.5% - 2.0% above current analyst consensus. EPS accretion is expected to be $0.35 to $0.40 in the first full year.