Assignment of Merger and Acquisition and Corporate

Restructuring

Topic- Identify type of acquisition strategy does

Johnson & Johnson pursue to acquire the
biomed

Submitted to – Ms. Gurpreet kaur

Submitted by - Saman, Roman
 Johnson & Johnson
• Johnson & Johnson, a global healthcare conglomerate
renowned for its diversified portfolio spanning
pharmaceuticals, medical devices, and consumer health
products, has long been at the forefront of driving medical
advancements. With a rich history dating back over a century,
Johnson & Johnson's commitment to improving patient
outcomes and enhancing quality of life has propelled it to the
forefront of the healthcare industry.
 Abiomed
• Abiomed, founded in [year], has emerged as a pioneer in
developing cutting-edge technologies aimed at revolutionizing
cardiovascular care. Its flagship product, the [insert name],
has garnered widespread acclaim for its efficacy in treating
heart conditions and improving patient outcomes.
 Types of Acquisition strategy
 Friendly Acquisition: This involves negotiations between the
acquiring company and the target company's management.
Both parties typically work together to reach an agreement on
terms and conditions
 Vertical Integration: Johnson & Johnson may acquire
Abiomed to vertically integrate its operations. This means
acquiring a company involved in a different stage of the
supply chain. For example, if Abiomed manufactures medical
devices that complement Johnson & Johnson's existing
products, this acquisition could help streamline production
and distribution.
 Horizontal Integration: This involves acquiring a competitor or
a company operating in the same industry to expand market
share or eliminate competition. If Abiomed operates in a
similar space as Johnson & Johnson's existing businesses, this
could be a reason for acquisition.
 Product Extension: Johnson & Johnson might acquire
Abiomed to expand its product portfolio. If Abiomed offers
innovative medical devices or technologies that align with
Johnson & Johnson's strategic goals, this type of acquisition
makes sense for product diversification.
 Market Extension: Acquiring Abiomed could also be a
strategy for Johnson & Johnson to enter new markets or
geographies where Abiomed already has a presence.
Benefits for Johnson & Johnson:

Diversification and Strengthening of Product Portfolio: Acquiring Abiomed would likely

expand Johnson & Johnson's product portfolio into the cardiovascular medical device market.
This diversification could reduce reliance on specific product categories and provide
opportunities for cross-selling and bundling with existing products.

Access to Innovative Technology and Intellectual Property: Abiomed is known for its expertise
in developing innovative heart pumps and related technologies. By acquiring Abiomed,
Johnson & Johnson could gain access to these technologies, enhancing its own research and
development capabilities and potentially leading to the development of new, groundbreaking
medical devices.

Expansion of Market Reach: Johnson & Johnson's global presence and distribution network
could help Abiomed expand its market reach beyond its current scope. This could lead to
increased sales and market share for Abiomed's products, especially in regions where Johnson
& Johnson has a strong presence.

Synergies and Cost Savings: Through the integration of operations, procurement, and
distribution channels, Johnson & Johnson could realize synergies and cost savings. By
eliminating redundancies and streamlining processes, the company could improve efficiency
and profitability.
Benefits for Abiomed:

Access to Financial Resources: As part of Johnson & Johnson, Abiomed would gain access
to the financial resources and stability of a larger, well-established company. This could
provide Abiomed with the necessary capital to invest in research and development,
expand its product portfolio, and pursue growth opportunities more aggressively.

Global Distribution and Marketing Capabilities: Abiomed's products could benefit from
Johnson & Johnson's extensive global distribution and marketing capabilities. Leveraging
Johnson & Johnson's network could help Abiomed reach new markets and increase
awareness and adoption of its products worldwide.

Research and Development Collaboration: Being part of Johnson & Johnson's broader
healthcare ecosystem could facilitate collaboration with other research and development
teams within the company. This collaboration could lead to the development of new
synergistic products or enhancements to existing ones.

Brand Strength and Reputation: Joining forces with a reputable and well-known company
like Johnson & Johnson could enhance Abiomed's brand strength and reputation in the
marketplace. This could lead to increased trust among healthcare professionals, patients,
and stakeholders, ultimately driving sales and market share growth.