Johnson & Johnson's Ethicon Scoops Up Torax Medical for Undisclosed Sum
Published: Feb 20, 2017
CINCINNATI, Feb. 17, 2017 /PRNewswire/ -- Ethicon, Inc. today announced a definitive agreement to acquire Torax Medical, Inc., a privately held medical device company that manufactures and markets the LINX® Reflux Management System, a novel minimally invasive device for the surgical treatment of GERD. The acquisition of Torax Medical will enable Ethicon to offer patients a safe and effective alternative to the anatomy-altering laparoscopic Nissen fundoplication surgical procedure.1
This LINX® Reflux Management System is a small implant comprised of interlinked titanium beads with magnetic cores which augment the body's natural barrier function to prevent reflux. LINX is currently used by physicians in over 300 hospitals in the United States and Europe. This acquisition is consistent with Ethicon's strategy of advancing innovation and investing in areas of unmet medical needs such as esophageal health.
Financial terms of the transaction have not been disclosed. The closing of the transaction is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The transaction is expected to close during the first quarter of 2017.
From creating the first sutures to revolutionizing surgery with minimally invasive procedures, Ethicon, part of the Johnson & Johnson Medical Devices Companies, has made significant contributions to surgery for more than 60 years. Our continuing dedication to Shape the Future of Surgery is built on our commitment to help address the world's most pressing health care issues, and improve and save more lives. Through Ethicon's surgical technologies and solutions including sutures, staplers, energy devices, trocars and hemostats and our commitment to treating serious medical conditions like obesity and cancer worldwide, we deliver innovation to make a life-changing impact. Learn more at www.ethicon.com, and follow us on Twitter @Ethicon. Ethicon represents the products and services of Ethicon, Inc. (the signing party), Ethicon Endo-Surgery, Inc. and certain of their affiliates.
Cautions Concerning Forward-Looking Statements: This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding the acquisition of Torax Medical, Inc. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Ethicon, Inc. and Johnson & Johnson. Risks and uncertainties include, but are not limited to: the satisfaction of closing conditions for the acquisition, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act; the possibility that the transaction will not be completed in the expected timeframe or at all; the potential that the expected benefits and opportunities related to the acquisition may not be realized or may take longer to realize than expected; the ability of Ethicon to successfully integrate the products, employees and operations of Torax Medical, Inc., as well as the ability to ensure continued performance or market growth of Torax Medical, Inc.'s products; challenges to patents; the ability of the company to successfully execute strategic plans; changes to applicable laws and regulations, including tax laws and global health care reforms; changes in behavior and spending patterns or financial distress of purchasers of health care products and services; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended January 3, 2016, including in Exhibit 99 thereto, and the company's subsequent filings. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Neither Ethicon, Inc. nor Johnson & Johnson undertakes to update any forward-looking statement as a result of new information or future events or developments.
1 Riegler, et al., Surg Endosc. (2015) 29:1123-1129
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SOURCE Ethicon, Inc.