Johnson & Johnson (JNJ.N) will buy Swiss medical devices maker Synthes Inc (SYST.VX) for $21.67 billion, placing a big bet on growing its orthopedics business with one of the largest deals ever in the medical technology sector. The acquisition is the largest for J&J and will make it the world leader in the orthopedic reconstruction market. It may also help the diversified U.S. healthcare group move past a wave of consumer product recalls and the loss of patent protection on top-selling medicines. "Orthopedics is a large and growing $37 billion global market and represents an important growth driver," said Bill Weldon, J&J's chairman and chief executive. But Weldon told Reuters in an interview that the Synthes deal was not a conscious effort to elevate the importance of devices over prescription drugs.
Johnson & Johnson is a holding company. The Company and its subsidiaries are engaged in the research and development, manufacture and sale of a range of products in the health care field. Shares of JNJ traded higher by 0.79% or $0.51/share to $65.46. In the past year, the shares have traded as low as $56.86 and as high as $65.62. On average, 11781600 shares of JNJ exchange hands on a given day and today's volume is recorded at 20033654.
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