Johnson & Johnson subsidiary reaches agreement to acquire Auris Health

Johnson & Johnson subsidiary Ethicon has reached an agreement to acquire robotics technology developer Auris Health for approximately $3.4 billion.

Additional contingent payments of up to $2.35 billion, in the aggregate, may be payable upon reaching certain predetermined milestones.

Ashley McEvoy, executive vice president, worldwide chairman, medical devices, Johnson & Johnson, said: “In this new era of health care, we’re aiming to simplify surgery, drive efficiency, reduce complications and improve outcomes for patients, ultimately making surgery safer. We believe the combination of best-in-class robotics, advanced instrumentation and unparalleled end-to-end connectivity will make a meaningful difference in patient outcomes.”

With this acquisition, Dr Frederic Moll CEO and Founder of Auris Health and a visionary in the field of surgical robotics, will be joining Johnson & Johnson upon completion of this transaction.

Dr Moll said: “We’re thrilled to be joining Johnson & Johnson to help push the boundaries of what is possible in medical robotics and improve the lives of patients across the globe. Together, we will be able to dramatically accelerate our collective product innovation to develop new interventional solutions that redefine optimal patient outcomes. This combination is a testament to the incredible work of the Auris Health team and the innovation engine behind the Monarch Platform, which represents a huge step forward in endoluminal technology. We look forward to continuing to shape the future of intervention with the added expertise and resources of the world’s largest healthcare organisation.”

With Auris Health’s current focus on lung cancer, the Monarch Platform robotic technology will play an important role within the Lung Cancer Initiative at Johnson & Johnson (LCI), enabling the development of a differentiated digital solution that addresses key steps in the lung cancer care journey, from diagnosis to early stage intervention, that are central to the company’s commitment to develop solutions that prevent, intercept and cure this deadly disease.

This move is also complementary to the acquisition of Orthotaxy’s robotic technology for orthopaedics and the continued development of the Verb Surgical Platform, through a strategic partnership with Verily.

Ms McEvoy said: “We are very committed to our partnership with Verily on the development of the Verb Surgical Platform. Collectively, these technologies, together with our market-leading medical implants and solutions, create the foundation of a comprehensive digital ecosystem to help support the surgeon and patient before, during and after surgery.”

The closing is subject to antitrust clearance and other customary closing conditions. The transaction is expected to close by the end of the second quarter of 2019.