Embattled Johnson & Johnson (NYSE: JNJ) announced positive news this week with its proposed acquisition of Micrus Endovascular, which makes devices to treat strokes, for roughly $480 million. Micrus' shares gained five percent in early morning trading Monday on word of the acquisition, which is expected to close in the second half of the year, MarketWatch reports.
Micrus will join Codman & Shurtleff, the neuro-device business of the DePuy family of companies within J&J. Codman's neurovascular portfolio includes bare platinum coils, vascular reconstruction devices and access devices.
"Stroke is a significant cause of death and disability around the world. At Micrus Endovascular, we are dedicated to developing innovative approaches to treating stroke and improving the outcomes of people impacted by this condition," says Micrus Chairman and CEO John Kilcoyne. "By joining forces with Codman & Shurtleff, we believe we could have an even greater impact on treating this condition that accounts for one out of 18 deaths in the U.S."
J&J may have moved in on Micrus to keep up with Covidien (NYSE: COV), which recently announced plans to acquire Ev3, a maker of endovascular devices like stents and guidewires, the New York Times Blog points out. Furthermore, all of this could have an impact on Boston Scientific (NYSE: BSX), which analysts say may sell its neurovascular division as part of a restructuring plan, the Wall Street Journal reports. However, Boston Scientific hasn't commented on what it might sell.