J&J led largest medtech M&A in 2022

MedTech News: Johnson & Johnson’s $17bn acquisition accounted for 42% of medtech M&A spend last year.

Abiomed is now part of Johnson & Johnson and will operate as a standalone business within Johnson & Johnson’s MedTech segment. The acquisition adds heart recovery solutions to complement the company’s Biosense Webster electrophysiology business, supporting the company’s expansion in high-growth markets. 

The size and the target of this deal caught the company “off guard”. However, the organisation believes Abiomed is a “high-quality target and fits JNJ’s businesses and company culture well”.

J&J said the acquisition is expected to be slightly dilutive to earnings per share in the first year, then adding $0.05 per share in 2024 and increasingly accretive thereafter.

Interestingly, J&J’s Abiomed takeout was the second-largest in the overall life sciences sector, behind only Amgen’s $28bn acquisition of Horizon, which specialises in medicines for rare and autoimmune diseases.

In comparison, the largest deal Medtronic closed last year involved the sinusitis specialist Intersect ENT at $1.2bn.

One deal is already on the books for 2023 with Thermo Fisher’s £2.3bn ($2.8bn) purchase of The Binding Site earlier this month.

Other big groups that have expressed an interest in buying include Abbott and Medtronic, although they are mostly focused on sub-$1bn tuck-in deals.

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