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12:00 AM
 | 
Oct 11, 2010
 |  BioCentury  |  Strategy

Platform Trifecta

J&J to keep Crucell independent, like previous platform plays Tibotec, Centocor

Johnson & Johnson has had good success with two platform-based acquisitions, one of antibody company Centocor Inc. in 1999 and another of antiviral company Tibotec-Virco N.V. in 2002. J&J aims to make it a trifecta with the purchase of vaccine-specialist Crucell N.V.

According to Paul Stoffels, J&J's global head of pharmaceutical R&D, the Crucell deal, like Tibotec and Centocor, brings a specialized platform in an area in which the pharma did not have expertise.

As with the two earlier deals, J&J plans to maintain Crucell as an independent subsidiary that will be the center of the pharma's vaccines development organization. J&J believes such a structure benefits both parties by maintaining the management and expertise in a specialized area while giving the biotech greater production and clinical development capabilities and a global reach for its products.

Last week, J&J's and Crucell's boards approved the deal terms first announced in September. The pharma will acquire the remaining 82.1% of Crucell it doesn't already own for €24.75 per share, or €1.8 billion ($2.4 billion) in cash. The price is a 58% premium to Crucell's close of €15.70 on Sept. 16, the day before the companies said they were in negotiations. The deal is expected to close in 1Q11.

After subtracting Crucell's €345.5 ($424.7 million) cash held at June 30, the deal values the biotech at...

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