Johnson & Johnson to acquire insulin-pump maker Animas for $518 million

By E. Janene Geiss

Philadelphia, Dec. 16 - Johnson & Johnson announced Friday that it signed a definitive agreement to acquire Animas Corp., an insulin delivery company, for $518 million in cash.

Animas is expected to operate as a stand-alone entity reporting through LifeScan, Inc., a Johnson & Johnson company offering blood glucose monitoring systems, according to a company news release.

The acquisition affords LifeScan immediate entry into the fast-growing insulin delivery pump market, officials said.

Under the terms of the agreement, Animas stockholders will receive $24.50 per share.

The net value of the transaction as of the anticipated closing date is estimated to be about $518 million, based on Animas' 22 million fully diluted shares outstanding, net of estimated cash on hand at time of closing.

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, officials said.

The transaction is expected to close in the first quarter of 2006.

"Diabetes is a worldwide issue, growing at an alarming rate. Our vision is to create a world without limits for people with diabetes," Eric Milledge, Johnson & Johnson business group chairman, said in the release.

"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 Corp. since 2003 and know they share our commitment and passion for advancing the standards of care for people with diabetes."

Animas' executives said the deal is not only in the best interest of shareholders 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," Katherine D. Crothall, chief executive officer and president of Animas, said in the release.

Animas is a West Chester, Pa., maker of insulin infusion pumps and related products.

LifeScan, based in New Brunswick, N.J., is a Johnson & Johnson company and maker of blood glucose monitoring products.

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