Advertisement

California

Johnson & Johnson to Acquire Alza

March 28, 2001|From Reuters

Johnson & Johnson, in its biggest deal ever, agreed Tuesday to buy Mountain View, Calif.-based Alza Corp. for about $10.2 billion in stock in a move to strengthen its drug pipeline and allow it to deliver medicines in better ways.

The deal, which was expected following reports Monday, will give the New Brunswick, N.J., company several promising new drugs, including Ditropan XL for treating overactive bladder and Concerta, a treatment for attention deficit disorder.

Johnson & Johnson Vice Chairman William Weldon said Alza would boost Johnson & Johnson's strengths in the areas of oncology, women's health, urology and pain management.

Johnson & Johnson already markets with Alza two of its products, Concerta and the Duragesic skin patch for chronic pain.

But the deal's terms--Johnson & Johnson will exchange 0.49 of its shares for each Alza share--were viewed as pricey by Wall Street. In New York Stock Exchange trading, Johnson & Johnson shares fell $2.13 to $83.25, and Alza rose 25 cents to $39 after soaring Monday.

Johnson & Johnson is best known for consumer products, such as Tylenol and Band-Aids, but derives 60% of its profit from drugs such as anemia treatment Procrit and Duragesic.

Advertisement
Los Angeles Times Articles
|
|
|