Johnson & Johnson to snap up Swiss biotech company Actelion for $30bn
Johnson & Johnson (J&J) is snapping up Europe's biggest biotech company Actelion in a $30bn (£23.7bn) deal.
According to Dealogic, this is the biggest M&A deal announced so far in 2017 and the biggest acquisition on record by Johnson & Johnson.
J&J, which is the world's biggest healthcare group, is also funding a new research and development company headed by chief executive and founder Jean-Paul Clozel.
Actelion will spin out its drug discovery operations and early-stage clinical development assets into a newly created biopharmaceutical company that will be listed in Switzerland.
J&J is paying $280 a share in cash for the biotech giant
According to Reuters, the new Swiss-listed public company being created will be capitalised with one billion Swiss francs ($790m). J&J will own 16 per cent and hold rights to another 16 per cent while Actelion shareholders will get one share in the new company for every Actelion share.
[infographic id="975"]
Read more: This Aim-listed x-ray firm is set to raise £21m
The deal gives J&J access to Actelion's range of rare-disease drugs including one to treat pulmonary arterial hypertension.
“We believe this transaction offers compelling value to both Johnson & Johnson and Actelion shareholders,” said Alex Gorsky, chairman and chief executive officer of Johnson & Johnson.
“Actelion has built an attractive, growing business with world-class commercial and clinical development capabilities. Adding Actelion’s portfolio to our already strong Janssen Pharmaceuticals business is a unique opportunity for us to expand our portfolio with leading, differentiated in-market medicines and promising late-stage products."