Abiomed, which develops heart pumps, will bring its expertise in cardiovascular med tech as J&J seeks to expand its presence in addressing heart failure and recovery. The company stated that it aims to position itself as a “cardiovascular innovator.”
J&J CEO Joaquin Duato noted in a statement that adding Abiomed to its portfolio was part of a business strategy to further develop its pharmaceutical and medical devices business.
In late September, J&J introduced Kenvue, its new consumer health business unit, which will be spun off in 2023.
“We have committed to enhancing our position in med tech by entering high-growth segments,” Duato said in a statement. “The addition of Abiomed provides a strategic platform to advance breakthrough treatments in cardiovascular disease and helps more patients around the world while driving value for our shareholders.”
Additionally, the company noted the move will boost J&J’s portfolio with Impella heart pumps, as well as help it in its goal to “make heart recovery the global standard of care.”
In 2022, Impella heart pumps brought in $985 million in total revenue globally.
J&J announced the Abiomed deal two weeks after releasing its latest earnings report, highlighted by sales growth of 1.9% to $23.8 billion during the quarter. The company’s pharma sales were boosted thanks to the strong performance of its one-shot COVID-19 vaccine.
Notably, J&J’s Cardiovascular, Metabolism and Other segment reported sales declines of 0.6% during the quarter and a 6.1% decline during the first nine months of 2022.