Johnson & Johnson Announces Definitive Agreement To Acquire Insulin Delivery Company
New Brunswick, NJ - Johnson & Johnson and Animas Corporation, an insulin delivery company, today announced a definitive agreement whereby Animas will be acquired in a cash-for-stock merger transaction. Animas is expected to operate as a stand-alone entity reporting through LifeScan, Inc., a Johnson & Johnson company offering blood glucose monitoring systems. The acquisition affords LifeScan immediate entry into the fast-growing insulin delivery pump market.
Under the terms of the agreement, Animas stockholders will receive $24.50 for each outstanding Animas share. The net value of the transaction as of the anticipated closing date is estimated to be approximately $518 million based upon Animas' 22 million fully diluted shares outstanding, net of estimated cash on hand at time of closing.
The boards of directors of Johnson & Johnson and Animas have approved the transaction, which is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, certain foreign regulatory approvals, Animas stockholder approval and other customary closing conditions. The transaction is expected to close in the first quarter of 2006.
Eric Milledge, Johnson & Johnson Company Group Chairman with responsibility for the LifeScan business, said, "Diabetes is a worldwide issue, growing at an alarming rate. Our vision is to create a world without limits for people with diabetes. The combination of Animas' insulin delivery systems and LifeScan's glucose monitoring systems will allow us to offer more comprehensive disease management solutions for our patients. We have worked in partnership with Animas Corporation since 2003 and know they share our commitment and passion for advancing the standards of care for people with diabetes."
Dr. Katherine D. Crothall, Chief Executive Officer and President of Animas Corporation, said the acquisition would not only be in the best interest of Animas stockholders and employees, but would benefit people with diabetes. "Insulin pumps allow significant improvements in blood glucose control over conventional therapy for people with insulin-requiring diabetes, reducing the long term morbidity of diabetes and improving quality of life. We expect that in combination with LifeScan, our capacity to further contribute to the management of this disease will be meaningfully increased."
LifeScan, a Johnson & Johnson company and a leading maker of blood glucose monitoring products, is dedicated to creating a world without limits for people with diabetes. Every day, people with diabetes rely on the company's OneTouch® Systems for simple testing and accurate results. In the United States, OneTouch® is the number-one selling brand and is the leader in healthcare professional recommendations. For company, product and diabetes care information visit www.LifeScan.com.
Animas, a leading maker of insulin infusion pumps and related products, is dedicated to improving diabetes management and making insulin pump therapy easier for patients with insulin requiring diabetes and healthcare professionals through product innovation, exemplary customer support and superior customer education. For more information on Animas, visit www.animascorp.com or call Animas Corporation at 877-937-7867.
Source: Johnson & Johnson