Johnson & Johnson has entered into a definitive agreement to acquire Abiomed, developer of breakthrough heart, lung and kidney support technologies, for approximately $16.6 billion. The transaction—expected to be completed prior to the end of the first quarter of 2023—will broaden Johnson & Johnson MedTech’s (JJMT) position in the cardiovascular space.

“We are pleased to have reached an agreement that reflects the remarkable value Abiomed created with our revolutionary Impella heart pump platform and promising pipeline,” said Michael R. Minogue, chairman, president and CEO of Abiomed. “This transaction partners us with an organization that shares our patients-first mindset and creates immediate value for our patients, customers, employees and shareholders. It will enable us to leverage Johnson & Johnson’s global scale, commercial strength and clinical expertise to accelerate our mission of making heart recovery the global standard of care.”

Impella heart pumps are a breakthrough technology with exclusive FDA approvals for patients with severe coronary artery disease requiring high-risk PCI (percutaneous coronary intervention), treatment of AMI (acute myocardial infarction) cardiogenic shock or right heart failure.

“The addition of Abiomed is an important step in the execution of our strategic priorities and our vision for the new Johnson & Johnson focused on pharmaceutical and MedTech,” said Joaquin Duato, CEO of Johnson & Johnson. “We have committed to enhancing our position in MedTech by entering high-growth segments. The addition of Abiomed provides a strategic platform to advance breakthrough treatments in cardiovascular disease and help more patients around the world while driving value for our shareholders.”

Following completion of the transaction, Abiomed will operate as a standalone business within Johnson & Johnson MedTech, becoming one of 12 JJMT priority platforms as defined by annual sales of at least $1 billion each. Minogue will assist in the transition, and Andrew Greenfield, who has 17 years with Abiomed, will serve as president of Abiomed.

Johnson & Johnson expects to fund the transaction through a combination of cash on hand and short-term financing and will continue to support R&D programs, exclusive FDA approvals and multiple randomized controlled trials already underway with the aim of achieving Class I clinical guidelines for Impella.