Johnson & Johnson eyes acquisitions in cardiovascular, elsewhere
July 16, 2014 by Brad Perriello
The world’s largest medical device operation is eyeing acquisitions to bolster its "subscale" cardiovascular business, particularly its electrophysiology business, Johnson & Johnson chairman & CEO Alex Gorsky told analysts yesterday.
In a conference call discussing J&J’s 2nd-quarter results, Gorsky said he’s interesting in shoring up the EP business, which is growing at a 14% clip. Read more
Abbott CEO defends inversions amid corporate exodus furor
July 18, 2014 by Arezu Sarvestani
Abbott chairman & CEO Miles White took to the media today to speak out against a new measure that would prevent corporate inversions, like the one included in Abbott’s sales of its generics business to Mylan Inc. and in Medtronic’s acquisition of Covidien.
These acquisitions agreements, as well as a handful of other mega-deals underway, include shifting the companies’ headquarters outside the U.S. where they will benefit from a more favorable corporate tax rate, especially on cash earned overseas. Not exempt from U.S. taxes, White emphasizes, are revenues collected prior to the inversion. Read more
Medtronic fights tax dodging rhetoric in Covidien merger
July 17, 2014 by Arezu Sarvestani
With talks heating up on Capital Hill about tax-dodging companies, medical device giant Medtronic issued an update regarding its tax position before and after the pending $43 billion merger with Covidien.
In an interactive graphic also filed with the SEC, Medtronic said that moving its headquarters overseas will only ensure that it can continue to use Covidien’s cash for U.S. investments. Read more
Could Medtronic-Covidien deal get caught in anti-inversion legislation?
July 16, 2014 by Arezu Sarvestani
The White House is looking to clamp down on companies that relocate their headquarters overseas in order to benefit from lower tax rates, a measure that could have implications for Medtronic’s $43 billion mega-merger with Covidien.
Part of the Medtronic-Covidien deal includes shifting Medtronic’s official headquarters from Minnesota to Covidien’s base in Ireland, allowing Medtronic to take advantage of the country’s more favorable corporate tax rate in a move called a corporate inversion. Read more
Siemens sells clinical microbiology biz to Beckman Coulter
July 17, 2014 by Arezu Sarvestani
Danaher subsidiary Beckman Coulter announced today that it signed a definitive agreement to acquire the clinical microbiology division of Siemens Healthcare.
The deal, the terms of which were not disclosed, is slated to close in the 1st quarter of 2015. Beckman hopes the acquisition will diversity its existing diagnostics business and drive growth for the company. Read more