Johnson & Johnson to buy Auris Health for $3.4 billion
Health products company Johnson & Johnson buys robotics firm Auris Health.
Johnson & Johnson will buy Auris Health, a robotics surgery firm. The health product company’s purchase is worth $3.4 billion in cash.
Why did Johnson & Johnson buy Auris Health?
Johnson & Johnson is the world’s largest health product producer. Auris makes robotic surgery products to assist doctors and has been valued at $2.1 billion. The pharmaceuticals giant is buying the startup to help expand into health technology.
‘This acquisition will accelerate Johnson & Johnson’s entry into robotics with potential for growth and expansion into other interventional applications,’ said Johnson & Johnson in a statement.
Ashley McEnvoy, Johnson & Johnson group chair of consumer medical devices, also explained the purpose of the purchase of Auris Health.
‘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. Collectively, these technologies, together with our market-leading medical implants and solutions, create the foundation of a comprehensive digital ecosystem to help support the surgeon and patient before, during and after surgery,’ said McAvoy in a statement.
When will Johnson & Johnson’s purchase of Auris Health be complete?
The purchase of Auris should be completed by Johnson & Johnson by the end of the second quarter. Johnson & Johnson chief executive officer, (CEO), Alex Gorsky, predicts the company will further expand into the billion-dollar surgical instrument business this year and into 2020.
‘What we want to make sure is that we get out in a timely manner, but that we're also out in a manner that ensures we're competitive and ensures, ultimately, that we're making an even bigger difference in this area as we go forward,’ said Gorsky.
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