Biological sealant maker Omrix Biopharmaceuticals Ltd. (Nasdaq:OMRI) today officially announced that Johnson & Johnson (NYSE: JNJ) will acquire the company for $438 million - $25 per share. Omrix rose 16.3% in early trading today to $24.60, giving a market cap of $421 million, after rising 30% on Friday, when reports of the acquisition first emerged. "Globes" was the first to report on the negotiations between the companies in August.
Ormix will operate as an independent unit through Johnson & Johnson subsidiary Ethicon Inc., which makes suture, mesh, hemostats and other products for a wide range of surgical procedures. Ethicon markets Omrix products in Europe and the US.
Johnson & Johnson company group chairman Alex Gorsky said, "Our partnership with Omrix has already expanded our capacity to provide innovative, next generation products that raise the standard of surgical care. We believe this transaction will further enhance our efforts to bring new, science-based products to patients and the healthcare professionals who treat them."
Omrix president and CEO Robert Taub said, "We are delighted to announce this transaction, which combines Omrix's expertise in developing innovative biological products with Ethicon's commercialization expertise and global reach. We believe this merger is in the best interest of Omrix's shareholders, customers and employees. Omrix and Ethicon have enjoyed a solid partnership for the past five years. As a formally unified entity, our successful distribution and development agreements will evolve into an even more attractive long-term growth strategy. Omrix's Israeli-based manufacturing and R&D expertise will be strengthened by the long-term stability and integration that this merger will create.
Taub founded Omrix in 1994, and it went public in 2006 at a company value of $143 million. The company posted a net profit of $3 million on $19.2 million revenue for the second quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on November 24, 2008
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