- Johnson & Johnson has purchased the specialist tech company
- J&J shares fell on the announcement
- CEO aims for “meaningful difference in patient outcomes”
American pharmaceutical company Johnson & Johnson has announced that it is buying the privately-held robotic surgical technologies manufacturer Auris Health in a cash sale that will cost around $3.4 billion.
The announcement included details of a further $2.35 billion that could be added to the total in aggregate if the company hits certain milestone targets that have not yet been publicly disclosed.
Auris is currently focused on treatments for lung cancer using the minimally invasive technology that it has developed. Their FDA-cleared platform is currently being used for therapeutic and diagnostic procedures related to bronchoscopy.
The Executive Vice President and Worldwide Chairman of Johnson & Johnson’s Medical Devices Division, Ashley McEvoy, commented: “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.”
“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,” McEvoy added.
Auris CEO and Founder Frederic Moll plans to join Johnson & Johnson once the deal is finalized and completed, although the press release did not specify what his new role would be with the company.
Dr. Moll said: “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.”
Shares of Johnson & Johnson were trading 0.2% down on Wednesday in the wake of the announcement.