Abbott Laboratories plans to spend US$19.3 billion to buy St Jude Medical Inc in a cash-stock deal that aims to strengthen the medical device maker’s stake in cardiovascular care.
The combined company would offer devices in nearly every area of cardiovascular care, competing directly with industry leaders Medtronic Inc and Boston Scientific Corp.
It said the acquisition would blend St Jude’s pacemaker and implantable defibrillator business with Abbott’s focus on artery-opening stents and heart-repair products.
Wells Fargo analyst Larry Biegelsen said the deal makes sense because “there is very little overlap” between the companies’ offerings. The combined business would be better able to compete with larger companies in the device space, including Johnson & Johnson.
North Chicago, Illinois-based Abbott said St Jude shareholders would receive US$46.75 in cash and a portion of Abbott stock for each St Jude share. The total consideration adds up to about US$85 per share.
That represents a 37 percent premium to Wednesday’s US$61.95 closing price of St Jude shares.
The deal value totals US$25 billion based on Abbott’s recent stock price and assuming about US$5.7 billion in St Jude debt.
Abbott makes medical devices and generic drugs, but infant formula and nutritional beverages, which includes the Similac, Ensure and Pedialyte brands, make up the company’s biggest business.
In February, Abbott said it would spend US$4.8 billion on Alere Inc to expand its medical testing business.
St Jude’s expertise selling medical implants to hospitals should open new opportunities and help drive sales for Abbott’s devices, Leerink Swann analyst Danielle Antalffy said.
“Abbott’s device business has been underscaled, driving underperformance over the last few years,” Antalffy said in a note to investors.
Abbott said the boards of both companies had approved the deal for St Paul, Minnesota-based St Jude.
The companies expect the deal to close in the fourth quarter, but the acquisition must still be reviewed by regulators and approved by St Jude shareholders.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
STAYING AHEAD: TSMC expects its sales this year to grow 14 to 19 percent and could spend up to US$3.52 billion on research and development, leaving its rivals far behind Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) reported that the US last year approved 99 percent of its patent applications, which placed the tech giant among the top patent holders in the US. In its Corporate Social Responsibility Report, TSMC said it last year secured about 3,600 patents worldwide, including more than 2,300 in the US. As of the end of last year, TSMC owned more than 39,000 patents, the report said. The company last year filed almost 6,500 patent applications worldwide and ranked among the top 10 patent applicants in the US. In Taiwan, it was the largest patent applicant for the fourth