🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Johnson & Johnson abandons deal for Takeda's TachoSil surgical patch

Published 04/10/2020, 02:25 PM
Updated 04/10/2020, 02:30 PM
© Reuters. The company logo for Johnson & Johnson is displayed on a screen to celebrate the 75th anniversary of the company's listing at the NYSE in New York
JNJ
-
4502
-

WASHINGTON (Reuters) - Johnson & Johnson (N:JNJ) said on Friday it abandoned plans to buy Takeda Pharmaceutical’s surgical patch product TachoSil, citing regulatory issues.

Takeda (T:4502), Japan’s biggest drugmaker, announced the sale of TachoSil, a surgical patch to control bleeding, to Johnson & Johnson's subsidiary Ethicon for $400 million last May.

"Ethicon and Takeda have mutually decided to terminate the TachoSil transaction, agreeing that it was the right decision given the regulators’ concerns," a representative for Johnson & Johnson said in a statement.

The chairman of the Federal Trade Commission, Joseph Simons, said earlier on Friday there were potential regulatory issues about the deal because Johnson & Johnson sells Evarrest, the only other U.S.-approved fibrin sealant patch designed to stop bleeding during surgery.

"Staff had significant concerns about the likely anticompetitive effects and had recommended that the Commission block the transaction. Now that the deal has been abandoned, patients and surgeons will continue to benefit from competition," Simons said in an email statement.

© Reuters. The company logo for Johnson & Johnson is displayed on a screen to celebrate the 75th anniversary of the company's listing at the NYSE in New York

In late March, European Union antitrust regulators had expressed concern about the deal and opened a full investigation, saying that high development costs meant rivals would find it difficult to enter the market.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.