J&J concludes $3.4bn Auris Health acquisition

2 April 2019 (Last Updated April 3rd, 2019 07:30)

Johnson & Johnson (J&J) subsidiary Ethicon has closed a $3.4bn acquisition of surgical robotics developer Auris Health.

J&J concludes $3.4bn Auris Health acquisition
Auris Health Monarch Platform is used in bronchoscopic diagnostic and therapeutic procedures. Credit: Auris Health.

Johnson & Johnson (J&J) subsidiary Ethicon has closed a $3.4bn acquisition of surgical robotics developer Auris Health.

Under the deal, Auris Health is eligible for up to $2.35bn in additional contingent payments, depending on the achievement of select predetermined milestones.

The companies first signed the definitive agreement in February this year. J&J plans to leverage Auris Health’s Monarch Platform to expand its digital portfolio across a variety of surgical specialities. The system is currently used in lung diagnostic and therapeutic procedures.

J&J medical devices executive vice-president and worldwide chairman Ashley McEvoy said: “We are focused on building a connected, data-driven digital ecosystem that pairs our market-leading surgical solutions with advanced technologies to improve the patient experience.

“The passionate team and differentiated innovation from Auris will help us amplify the power of digital surgery to address unmet clinical needs.”

“The passionate team and differentiated innovation from Auris will help us amplify the power of digital surgery to address unmet clinical needs and lead a transformation in surgical care and lung cancer intervention.”

The healthcare giant added that Auris Health’s platform complements robotic technologies that are being developed for general surgery applications by Verb Surgical, a joint venture (JV) between J&J and Verily.

The platform will also support orthopaedics robotic technologies by Orthotaxy, which was acquired by J&J in February last year.

J&J has completed a sale of its advanced sterilisation products (ASP) business to Fortive for a total consideration of $2.8bn. This deal comprised $2.7bn in cash proceeds and $0.1bn in retained net receivables. Fortive made a binding offer to buy the ASP business in June last year.

ASP is focused on delivering capital, consumables and software solutions for low-temperature terminal sterilisation and high-level disinfection of reusable surgical instruments to prevent hospital-acquired infections.