I love MedTech- it is the silent killer. A show of hands please, how many people out there heard about Johnson and Johnson’s announcement to acquire Conor Medsystems last week for $1.4bn in CASH?
Now, how many heard about Google’s YouTube acquisition for $1.6bn in PAPER?
Yes, cash is made of paper, but the similarity ends there. This was an amazing purchase that has the DES (drug eluting stent) market buzzing.
As an investor in this space (Chameleon BioSurfaces) I was very pleased to see that type of acquisition hit the front page weeks after completion for a number of reasons.
It’s worth noting that Conor’s turnover was $2 million last year, with a net loss of $58 million for the year. T/O for Q3 2006 was $10 million, with a net loss of $10 million – Sales price $1.4 billion CASH. (It’s worth repeating)
