J&J Gives Up Surgical Business For Orthopedic Device Acquisition
Johnson & Johnson will have to sell its system for surgically treating serious wrist fractures to win federal clearance of its pending $21.3 billion acquisition of Synthes, Inc. The New Brunswick, N.J., healthcare giant agreed to buy the Swiss orthopedic device maker last year in its biggest deal ever.
The Federal Trade Commission is approving the transaction as long as Johnson & Johnson sells the wrist fracture system, called DVR, to Biomet Inc. of Warsaw, IN. Otherwise, the FTC says, the two companies would control more than 70 percent of the market for such systems. Earlier this year, Johnson & Johnson agreed to sell its trauma business to win approval from European Union competition regulators.
Johnson & Johnson has called the orthopedics market an important growth driver.