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Johnson & Johnson to acquire Auris Health for $3.4 billion
Johnson & Johnson says that its subsidiary, Ethicon, Inc., has entered into a definitive agreement to acquire surgical robotics company Auris Health, Inc. for approximately USD 3.4 billion in cash.
Auris Health is a privately held developer of robotic technologies, initially focused in lung cancer, with an FDA-cleared platform currently used in bronchoscopic diagnostic and therapeutic procedures. This acquisition aims to accelerate Johnson & Johnson's entry into robotics with potential for growth and expansion into other interventional applications. "In this new era of health care, we're aiming to simplify surgery, drive efficiency, reduce complications and improve outcomes for patients, ultimately making surgery safer," says Ashley McEvoy, Executive Vice President, Worldwide Chairman, Medical Devices, Johnson & Johnson, in a press release. "We believe the combination of best-in-class robotics, advanced instrumentation and unparalleled end-to-end connectivity will make a meaningful difference in patient outcomes." With this acquisition, Frederic Moll, M.D., CEO and Founder of Auris Health and a visionary in the field of surgical robotics, will be joining Johnson & Johnson upon completion of this transaction. "We're thrilled to be joining Johnson & Johnson to help push the boundaries of what is possible in medical robotics and improve the lives of patients across the globe. Together, we will be able to dramatically accelerate our collective product innovation to develop new interventional solutions that redefine optimal patient outcomes," says Dr. Moll. Closing of the acquisition is subject to antitrust clearance and other customary closing conditions. The transaction is expected to close by the end of the second quarter of 2019. Additional contingent payments of up to USD 2.35 billion, in the aggregate, may be payable upon reaching certain predetermined milestones.