Is Johnson & Johnson Interested In Doing Large M&As? | MDDI Medical Device and Diagnostic Industry News Products and Suppliers
Just over a month ago, Financial Times reported that Johnson & Johnson was nearing a deal for Pharmacyclics, a cancer-drug maker. That was before AbbVie apparently swooped in and beat the New Jersey conglomerate by pocketing the company for $21 billion.
The last mega deal Johnson & Johnson did was back in 2012 when it bought orthopedics company Synthes for $19.7 billion.
In its first-quarter conference call with analysts Monday, Johnson & Johnson’s CEO – Dominic Caruso – was asked if the company had an appetite for large acquisitions across its different businesses given what’s been reported of its involvement in Pharmacyclics.
Caruso declined to comment on what he described as “rumors or speculation about our involvement in the Pharmacyclics,” but did go into some lengths about the company’s acquisitions and capital allocation philosophy.
He mentioned if it were up to him, he would allocate all the remaining free cash flow after distributing dividends to acquisitions that create value regardless of how big or small those deals are.