Bloomberg.com – Johnson & Johnson will buy Omrix Biopharmaceuticals Inc. for $438 million, gaining protein-based products that stanch bleeding during surgery.
J&J will pay $25 a share for New York-based Omrix, the companies said in a statement today. That’s 18 percent higher than the Nov. 21 closing price of $21.16.
Omrix makes two bleeding-control products, Evithrom and Evicel, distributed by J&J, that are based on the clotting proteins thrombin and fibrin. Omrix is testing a patch that uses fibrin to form an instant clot. Omrix is based in New York and most research and manufacturing takes place in Israel. The company also makes products that bolster the immune system.
Omrix will remain a stand-alone company and report to J&J’s Ethicon Inc. subsidiary, which specializes in surgical tools and related products. J&J, the world’s largest health-care company, expects a write-off of $120 million if the deal closes as planned next month, according to the statement. The New Brunswick, New Jersey, company said the agreement won’t help earnings next year, and could be a slight drag then.