Featured Company News – J&J Completes Actelion Acquisition

LONDON, UK / ACCESSWIRE / June 19, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Johnson & Johnson (NYSE: JNJ). The Company announced on June 16, 2017, that it has completed the acquisition of Actelion Ltd for an about $30 billion in cash. The acquisition was completed under an all-cash public tender offer by Johnson & Johnson’s Swiss subsidiary, Janssen Holding GmbH. Post the transaction, Actelion will become part of the Janssen Pharmaceutical Companies of Johnson & Johnson. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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Details of the Announcement

Founded in the year 1997, and based in Basel, Actelion Pharmaceuticals is a leading firm in the field of pulmonary arterial hypertension (PAH). The Company’s portfolio of PAH treatments includes the spectrum of disease, from WHO Functional Class (FC) II through to FC IV, with oral, inhaled and intravenous medications. This agreement is set to create a stronger pharmaceutical business for Johnson & Johnson, with leading and differentiated in-market medicines and promising late stage products.

Actelion’s PAH franchise includes differentiated, innovative medicines, including, Opsumit®, Uptravi®, and Tracleer®1, which further expands the Janssen Business and provides the Company a leading commercial position in the segment of medical innovation with serious illness and significant unmet medical needs.

This transaction comes on the heels of the agreement announced on January 26, 2017, pursuant to which Johnson & Johnson agreed to acquire Actelion for $30 billion, with a spin-out of a new R&D Company. Actelion spun out its drug discovery operations and early-stage clinical development assets into a newly designated Swiss biopharmaceutical Company, Idorsia, Ltd. A Johnson & Johnson subsidiary will initially hold 9.9% of the shares of Idorsia, Ltd, and it will have the rights to potentially increase up to 32% on a convertible note.

Idorsia

Idorsia, headed by Jean-Paul Clozel (founder of Actelion), is not expected to generate significant revenues for the next 3 years. Under the terms of the agreement, Actelion’s shareholders are entitled to receive $280 in cash and a share in Idorsia for each of their shares. Idorsia was launched with SFR 1.00 billion in cash and multiple under-development drugs under its portfolio. The Company’s pipeline of drugs in development included treatments for central nervous system, cardiovascular, and immunological disorders.

This agreement covers dual endothelin receptor antagonist ACT-132577, one of four phase-2 assets in Idorsia’s pipeline. Actelion recently posted data from a phase-trial of ACT-132577 in May 2017. Johnson & Johnson has the option to pay $230 million and commit to royalties that range from 20% to 35% to opt-in. ACT-132577 is one of the primary Idorsia assets, moving towards phase-3 of developments.

Johnson & Johnson expects the transaction to be accretive to its net sales and views about $1.3 billion in sales for 2017, through this agreement. The Company expects the transaction to be accretive to 2017 adjusted EPS by about $0.07. In the first full-year post the closure of the transaction, Johnson & Johnson expects the transaction to be accretive to its adjusted earnings per share by $0.35 to $0.40.

Last Close Stock Review

At the closing bell, on Friday, June 16, 2017, Johnson & Johnson’s stock marginally rose 0.98%, ending the trading session at $134.35. A total volume of 12.26 million shares have exchanged hands, which was higher than the 3-month average volume of 5.81 million shares. The Company’s stock price surged 4.91% in the last three months, 16.84% in the past six months, and 15.18% in the previous twelve months. Moreover, the stock rallied 16.61% since the start of the year. The stock is trading at a PE ratio of 22.58 and has a dividend yield of 2.50%. The stock currently has a market cap of $363.63 billion.

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