Johnson & Johnson Acquires NeuWave; Collaborates with Genentech

JNJ  Ethicon, a medical device company of Johnson & Johnson (NYSE: JNJ – $60.20), announced a definitive agreement to acquire NeuWave Medical, Inc., a privately held medical device company that manufactures and markets minimally invasive soft tissue microwave ablation systems. Their products are currently used by physicians in over half of the top cancer centers in the United States. This acquisition is consistent with the Johnson & Johnson Medical Devices’ strategy of advancing innovation and investing in areas of unmet medical needs such as surgical oncology. Financial terms of the transaction were not disclosed. Separately, the pharmaceutical arm of J&J, Janssen Research, announced it has entered into a clinical trial collaboration agreement with Genentech, a member of the Roche Group, to initiate two studies to determine the safety and tolerability of DARZALEX®.. These studies will assess the potential of the combination therapy in multiple myeloma and in solid tumors.

The stock rallied following JNJ’s fourth quarter earning’s release when management stated that operational sales growth would be in the 4.5%-6.0% range. Adjusted share earnings are expected to be $6.50 this year and next year could see a rise to $6.90. The shares are currently yielding investors 2.9% at current levels and the long-range outlook for the company remains positive.

JNJ

 

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