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J&J Intends to Buy Residual Stake in Japanese Skincare Firm
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Johnson & Johnson (JNJ - Free Report) announced that it has offered to buy the remaining stake in Japanese skincare firm Ci:z Holdings Co., Ltd for approximately 230 billion Japanese yen or $2.05 billion.
In July 2016, J&J’s affiliate firm Cilag entered into a strategic collaboration with the Japanese company to distribute its products outside Japan. J&J acquired an interest of 19.9% through Cilag in the Japanese firm and is already its second largest shareholder.
Notably, J&J intends to acquire all the outstanding shares of the Japanese firm via this tender offer for an all-in-cash price of 5,900 Japanese yen per share or $52.5 including the shares held by CIC Corporation, the asset management company of Ci:z Holdings’ founder Dr. Yoshinori Shirono.
The deal is expected to close in the first half of 2019.
On completion, the acquisition will lend J&J the ownership of Ci:z Holdings’ popular brands such as Dr.Ci:Labo, Labo Labo and Genomer and maximize the value creation for its consumer business. The buyout looks to be a good strategic fit for J&J as it will not only strengthen its already dominating skincare division and pipeline but also provide an access to a broader patient population across the globe.
The integration will benefit the Japanese firm by fetching in adequate cash for its shareholders. Further, the cash inflow will help expanding and improving the company’s retail presence through J&J’s well-established distribution networks and a global innovation pipeline.
Shares of J&J have dipped 1.6% year to date against the industry’s increase of 1.8%.
Last week, J&J issued a strong financial report for third-quarter 2018. Sales came in at $20.3 billion, beating the Zacks Consensus Estimate of $19.91 billion. The metric also increased 3.6% from the year-ago period, reflecting an operational rise of 5.5% and an unfavorable currency impact of 1.9%.
New products like Imbruvica, marketed in partnership with AbbVie (ABBV - Free Report) and Darzalex, continued to perform well in the cancer space. However, sales of the blockbuster rheumatoid arthritis drug, Remicade, marketed in partnership with Merck (MRK - Free Report) , declined due to biosimilar competition in the United States.
J&J also raised its previously issued earnings and sales guidance for 2018.
Eli Lilly’s earnings estimates have moved 0.9% north for 2018 and 1.6% for 2019 over the past 60 days. The stock has surged 25.9% so far this year.
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J&J Intends to Buy Residual Stake in Japanese Skincare Firm
Johnson & Johnson (JNJ - Free Report) announced that it has offered to buy the remaining stake in Japanese skincare firm Ci:z Holdings Co., Ltd for approximately 230 billion Japanese yen or $2.05 billion.
In July 2016, J&J’s affiliate firm Cilag entered into a strategic collaboration with the Japanese company to distribute its products outside Japan. J&J acquired an interest of 19.9% through Cilag in the Japanese firm and is already its second largest shareholder.
Notably, J&J intends to acquire all the outstanding shares of the Japanese firm via this tender offer for an all-in-cash price of 5,900 Japanese yen per share or $52.5 including the shares held by CIC Corporation, the asset management company of Ci:z Holdings’ founder Dr. Yoshinori Shirono.
The deal is expected to close in the first half of 2019.
On completion, the acquisition will lend J&J the ownership of Ci:z Holdings’ popular brands such as Dr.Ci:Labo, Labo Labo and Genomer and maximize the value creation for its consumer business. The buyout looks to be a good strategic fit for J&J as it will not only strengthen its already dominating skincare division and pipeline but also provide an access to a broader patient population across the globe.
The integration will benefit the Japanese firm by fetching in adequate cash for its shareholders. Further, the cash inflow will help expanding and improving the company’s retail presence through J&J’s well-established distribution networks and a global innovation pipeline.
Shares of J&J have dipped 1.6% year to date against the industry’s increase of 1.8%.
Last week, J&J issued a strong financial report for third-quarter 2018. Sales came in at $20.3 billion, beating the Zacks Consensus Estimate of $19.91 billion. The metric also increased 3.6% from the year-ago period, reflecting an operational rise of 5.5% and an unfavorable currency impact of 1.9%.
New products like Imbruvica, marketed in partnership with AbbVie (ABBV - Free Report) and Darzalex, continued to perform well in the cancer space. However, sales of the blockbuster rheumatoid arthritis drug, Remicade, marketed in partnership with Merck (MRK - Free Report) , declined due to biosimilar competition in the United States.
J&J also raised its previously issued earnings and sales guidance for 2018.
Johnson & Johnson currently carries a Zacks Rank #2 (Buy). Another top-ranked stock from the same space is Eli Lilly and Company (LLY - Free Report) , holding the same solid Zacks Rank as J&J. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Eli Lilly’s earnings estimates have moved 0.9% north for 2018 and 1.6% for 2019 over the past 60 days. The stock has surged 25.9% so far this year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>