Johnson & Johnson (JNJ - Free Report) has received a regulatory approval from the European Commission (EC), thus completing all necessary formalities to close the pending acquisition of Swiss biopharmaceutical company, Actelion Ltd. .
The acquisition was originally announced by J&J in January this year for $280 per share, amounting to approximately $30.0 billion.
J&J expects the settlement of all-cash public tender offer on Jun 16 subject to the demerger, antitrust clearance and other customary closing conditions. The acquisition is expected to diversify J&J’s revenues to pulmonary arterial hypertension (PAH) therapeutic category and bolster its long-term growth.
J&J’s shares have outperformed the Zacks classified Large Cap Pharma industry so far this year. The company’s shares have rallied 14.2% compared with the industry’s gain of 10.8%.
Per agreement terms, soon before the acquisition’s completion, Actelion will spin out its drug discovery operations and early-stage clinical development assets into a newly created Swiss biopharmaceutical company, Idorsia. The shares of Idorsia, which will be listed on the Swiss Exchange (SIX), will be distributed to Actelion’s shareholders as a stock dividend upon the tender’s closing.
As previously announced, J&J will initially hold Idorsia’s 9.9% shares and have rights to an additional 32% of its equity through a convertible note.
Investors must be reminded that J&J’s key areas of focus include immunology, infectious diseases & vaccines, neuroscience, cardiovascular & metabolism and oncology, while a sixth therapeutic area -- pulmonary arterial hypertension -- will be added after the completion of Actelion acquisition.
Zacks Rank & Key Picks
J&J currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in healthcare sector include VIVUS, Inc. and Regeneron Pharmaceuticals, Inc. (REGN - Free Report) . While VIVUS sports a Zacks Rank #1 (Strong Buy), Regeneron carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
VIVUS’s loss per share estimates narrowed from 50 cents to 39 cents for 2017 in the last 60 days. The company posted positive earnings surprises in all four trailing quarters, with an average beat of 233.69%.
Regeneron’s earnings per share estimates increased from $10.16 to $10.52 for 2017 and from $10.90 to $12.10, over last 60 days. The company posted positive earnings surprises in two of the four trailing quarters with average beat of 0.45%.
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Johnson & Johnson (JNJ - Free Report) has received a regulatory approval from the European Commission (EC), thus completing all necessary formalities to close the pending acquisition of Swiss biopharmaceutical company, Actelion Ltd. .
The acquisition was originally announced by J&J in January this year for $280 per share, amounting to approximately $30.0 billion.
J&J expects the settlement of all-cash public tender offer on Jun 16 subject to the demerger, antitrust clearance and other customary closing conditions. The acquisition is expected to diversify J&J’s revenues to pulmonary arterial hypertension (PAH) therapeutic category and bolster its long-term growth.
J&J’s shares have outperformed the Zacks classified Large Cap Pharma industry so far this year. The company’s shares have rallied 14.2% compared with the industry’s gain of 10.8%.
Per agreement terms, soon before the acquisition’s completion, Actelion will spin out its drug discovery operations and early-stage clinical development assets into a newly created Swiss biopharmaceutical company, Idorsia. The shares of Idorsia, which will be listed on the Swiss Exchange (SIX), will be distributed to Actelion’s shareholders as a stock dividend upon the tender’s closing.
As previously announced, J&J will initially hold Idorsia’s 9.9% shares and have rights to an additional 32% of its equity through a convertible note.
Investors must be reminded that J&J’s key areas of focus include immunology, infectious diseases & vaccines, neuroscience, cardiovascular & metabolism and oncology, while a sixth therapeutic area -- pulmonary arterial hypertension -- will be added after the completion of Actelion acquisition.
Zacks Rank & Key Picks
J&J currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in healthcare sector include VIVUS, Inc. and Regeneron Pharmaceuticals, Inc. (REGN - Free Report) . While VIVUS sports a Zacks Rank #1 (Strong Buy), Regeneron carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
VIVUS’s loss per share estimates narrowed from 50 cents to 39 cents for 2017 in the last 60 days. The company posted positive earnings surprises in all four trailing quarters, with an average beat of 233.69%.
Regeneron’s earnings per share estimates increased from $10.16 to $10.52 for 2017 and from $10.90 to $12.10, over last 60 days. The company posted positive earnings surprises in two of the four trailing quarters with average beat of 0.45%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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