Johnson & Johnson to acquire Acclarent for $785 million

Johnson & Johnson (J&J), the worldÔÇÖs largest health products company, has announced it will acquire medical technology company Acclarent Inc. for $785 million.  The deal is expected to significantly boost J&JÔÇÖs presence in the ear, nose and throat treatment business. The venture capital arm of New Brunswick, New Jersey-based J&J began investing in Acclarent a year ago. J&J's surgical product-making subsidiary, Ethicon, will acquire Acclarent, which has about 325 employees and is headquartered in Menlo Park, California. Acclarent manufactures minimally invasive devices to treat sinus infections without the use of surgery or drugs. One product it makes is a balloon-catheter system that is gradually inflated to treat blocked nasal passages. Sinus infections affect about 37 million people each year in the US.  The company also manufactures other products which offer an alternative to conventional surgical approaches, including those for the treatment of sleep apnea.  "Millions of people suffer from ENT conditions, such as chronic sinusitis and obstructive sleep apnea," said William M. Facteau, president and CEO for Acclarent.  "The opportunity to become part of Ethicon will enable us to continue to innovate and expand our reach so that more physicians and patients worldwide will benefit from our technology."  Gary Pruden, group chairman for Johnson & Johnson with responsibility for the Ethicon business, said: "Understanding and addressing customers' unmet needs through innovation is a hallmark of both Acclarent and Ethicon's success.  ÔÇ£This transaction represents an important growth opportunity for our business in an area where there were previously limited solutions available to patients."  J&J last month announced it will cut up to seven percent of its workforce in order to release funds to support increasingly expensive drug research and to meet future challenges including greater competition and a tougher selling environment.  Around 900 jobs are to be lost from the companyÔÇÖs Ortho-McNeil-Janssen Pharmaceutical unit.  Cost cutting has enabled the company to make several acquisitions this year, including the cancer drug developer Cougar Biotechnology for $970 million; as well as stakes in the drug maker Elan Corp and the Dutch vaccine company Crucell.  The Acclarent transaction is expected to close in the first quarter of 2010.  J&J employs approximately 117,000 workers at more than 250 of its companies worldwide.  *┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á *