News

Posted On: 12/16/2005

J&J to Acquire Insulin Delivery Company

PharmaManufacturing.com

Johnson & Johnson (New Brunswick, N.J.) and Animas Corp., an insulin delivery company, on Dec. 16 announced a definitive agreement whereby Animas will be acquired in a cash-for-stock merger transaction. West Chester, Pa.-based Animas is expected to operate as a stand-alone entity reporting through LifeScan, Inc., a Johnson & Johnson company offering blood glucose monitoring systems. The acquisition affords LifeScan immediate entry into the fast-growing insulin delivery pump market.

Under the terms of the agreement, Animas stockholders will receive $24.50 for each outstanding Animas share. The net value of the transaction as of the anticipated closing date is estimated to be approximately $518 million.

The boards of directors of Johnson & Johnson and Animas have approved the transaction, which is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, certain foreign regulatory approvals, Animas stockholder approval and other customary closing conditions. The transaction is expected to close in the first quarter of 2006.

Eric Milledge, Johnson & Johnson Co. Group Chairman with responsibility for the LifeScan business, said, "Diabetes is a worldwide issue, growing at an alarming rate. Our vision is to create a world without limits for people with diabetes. The combination of Animas' insulin delivery systems and LifeScan's glucose monitoring systems will allow us to offer more comprehensive disease management solutions for our patients. We have worked in partnership with Animas Corporation since 2003 and know they share our commitment and passion for advancing the standards of care for people with diabetes."

Katherine D. Crothall, Chief Executive Officer and President of Animas Corp., said the acquisition would not only be in the best interest of Animas stockholders and employees, but would benefit people with diabetes. "Insulin pumps allow significant improvements in blood glucose control over conventional therapy for people with insulin-requiring diabetes, reducing the long term morbidity of diabetes and improving quality of life. We expect that in combination with LifeScan, our capacity to further contribute to the management of this disease will be meaningfully increased."

For more information on LifeScan, visit www.LifeScan.com. For more on Animas, visit www.animascorp.com.