Johnson & Johnson wins cheaper price for Guidant

Share this article:
Johnson & Johnson secured a 15% cut in its Guidant purchase price, clearing the way to add the device company to its roster of operating companies.
The new terms mean J&J will buy Guidant--maker of defibrillators and pacemakers--for $21.5 billion, or $63.08 per share, instead of the prior $25.4 billion, or $76 a share, they had agreed on in December.
J&J will pay $33.25 cash and 0.49 of a J&J share to Guidant shareholders, who will vote on the new deal in January.
By hammering out a deal, the two companies avoided a prolonged legal battle, which Guidant started last week when it sued J&J in federal court to force it to abide by original terms. Johnson & Johnson had claimed it should not be held to because Guidant's long-term financial outlook had materially suffered by product problems. Guidant charged that the damages were short-term.
Ronald Dollens retired from his post as Guidant chief executive, with James Cornelius, chairman, assuming his duties during the transition.
Share this article:

Email Newsletters

More in News

BMS Q2 sales slip, Eliquis, Yervoy soar

BMS Q2 sales slip, Eliquis, Yervoy soar

The company attributed part of the Eliquis boost to the BMS-Pfizer DTC and education efforts.

Gilead, Merck HCV marketing battle may be on horizon

Gilead, Merck HCV marketing battle may be on ...

Disclosed in its earnings report yesterday, Gilead may have a card up its sleeve to counter Merck's experimental hep. C combo regimen.

Sales of Biogen MS pill pick up overseas

Sales of Biogen MS pill pick up overseas

Biogen Idec is seeing strong sales for blockbuster MS drug Tecfidera, especially overseas where it's beginning to catch fire this summer.