Johnson & Johnson said Wednesday it would buy robotic surgery firm Auris Health for $3.4 billion in cash.
exiting the insulin pump market.
Bloomberg reported last month that J&J was pursing an acquisition of Auris Health, a privately held developer of robotic technologies. J&J said Wednesday it’s creating a “connected digital ecosystem” that uses data and robotic technology to guide surgeon through procedures and improve patient treatment.
The surgical instruments business is expected to reach more than $12 billion by 2025, with the biggest players in the space including J&J, Medtronic, and Intuitive Surgical.
J&J CEO Alex Gorsky noted in a fourth-quarter earnings call last month that investors would see “continued news about our robotics platform over the course of 2020 and beyond.”
“What we want to make sure is that we get out in a timely manner,” he said, “but that we’re also out in a manner that ensures we’re competitive and ensures, ultimately, that we’re making an even bigger difference in this area as we go forward.”
The transaction is expected to close by the end of the second quarter of 2019.
J&J’s stock was slightly higher in premarket trading Wednesday. The stock is up nearly 4 percent since the beginning of this year. Shares are more than 2 percent higher over the last 12 months.
contributed to this report.