FTC to look at J&J-Guidant
FTC to look at J&J-Guidantby Donna Block in Washington Posted 05:07 EST, 18, Feb 2005
Healthcare giant Johnson & Johnson Inc. said Friday, Feb. 18, it received a request for additional information from the Federal Trade Commission as the agency reviews its acquisition of Guidant Corp.
In a joint press release the two medical product companies indicated that the request was anticipated and that they are still expecting to receive regulatory approval and close the deal in the third quarter.
In mid-December, Johnson & Johnson announced plans to acquire Guidant in a $25.4 billion deal.
The acquisition brings New Brunswick, N.J.-based Johnson & Johnson a strong new line of cardiac devices that it previously had not made, as well as Guidant's experimental drug-coated coronary stents, which are used to open clogged heart arteries. The new stents could hit the market as early as 2007. Johnson & Johnson already has a strong presence in medical devices with its own stent, which Guidant helps market.
But antitrust concerns have been raised over the combination of both companies' stent businesses since Guidant competes directly with Johnson & Johnson subsidiary Cordis Corp. Cordis and Boston Scientific Corp. are the only firms that currently market a drug-coated coronary stent.
If the deal passes regulatory muster and the companies are not forced to divest some of the drug coated stent business, the combined company could have 50% of the U.S. market in 2007.
Healthcare giant Johnson & Johnson Inc. said Friday, Feb. 18, it received a request for additional information from the Federal Trade Commission as the agency reviews its acquisition of Guidant Corp.
In a joint press release the two medical product companies indicated that the request was anticipated and that they are still expecting to receive regulatory approval and close the deal in the third quarter.
In mid-December, Johnson & Johnson announced plans to acquire Guidant in a $25.4 billion deal.
The acquisition brings New Brunswick, N.J.-based Johnson & Johnson a strong new line of cardiac devices that it previously had not made, as well as Guidant's experimental drug-coated coronary stents, which are used to open clogged heart arteries. The new stents could hit the market as early as 2007. Johnson & Johnson already has a strong presence in medical devices with its own stent, which Guidant helps market.
But antitrust concerns have been raised over the combination of both companies' stent businesses since Guidant competes directly with Johnson & Johnson subsidiary Cordis Corp. Cordis and Boston Scientific Corp. are the only firms that currently market a drug-coated coronary stent.
If the deal passes regulatory muster and the companies are not forced to divest some of the drug coated stent business, the combined company could have 50% of the U.S. market in 2007.
