Ethicon Announces Acquisition of Megadyne Medical Products, Inc.
Complements and expands Ethicon’s advanced energy portfolio with broad range of innovative electrosurgical tools
CINCINNATI, Jan. 20, 2017 - Ethicon Endo-Surgery, Inc. announced today that it has acquired Megadyne Medical Products, Inc., a privately held medical device company that develops, manufactures and markets electrosurgical tools used in operating rooms worldwide. The acquisition brings together the intelligence of Ethicon’s* advanced energy devices with Megadyne’s innovative portfolio of electrosurgical tools representing a major step forward in Ethicon’s goal to deliver the most comprehensive suite of intelligent energy solutions that enhance precision and efficiency in the operating room. Financial terms of the transaction have not been disclosed.
“We are committed to meeting the evolving needs of surgeons and hospital systems, and the addition of Megadyne’s state-of-the-art portfolio gives us a comprehensive suite of energy devices to improve patient care in surgeries across all specialties,” said Michael del Prado, Company Group Chairman of Ethicon. “This acquisition will help accelerate and expand innovation across the entire energy portfolio, broadening our surgical and energy solutions to provide clinical and economic value to customers worldwide.”
Electrosurgical devices are used in nearly four out of every five surgeries. Megadyne complements Ethicon’s advanced energy tools with world class products that include monopolar and bipolar electrodes, patient return electrodes, generators and smoke evacuation systems. The addition of Megadyne’s electrosurgical portfolio significantly enhances Ethicon presence in the multi-billion dollar global energy market providing significant value to hospital systems and surgeons and reach more patients worldwide.
“Megadyne shares Ethicon’s commitment to bringing innovative solutions to surgeons and hospital systems worldwide,” said Megadyne Chief Executive Officer Rob Farnsworth. “We are excited about working together to bring more elegant electrosurgical tools to a broader market through Ethicon’s extended global network.”
From creating the first sutures, to revolutionizing surgery with minimally invasive procedures, Ethicon, part of the Johnson & Johnson Medical Devices Companies (NYSE: JNJ), 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.
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 Megadyne Medical Products, 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 Endo-Surgery, Inc., any of the other Ethicon companies and Johnson & Johnson. Risks and uncertainties include, but are not limited to: 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 Megadyne Medical Products, Inc., as well as the ability to ensure continued performance or market growth of Megadyne Medical Products, Inc.'s products; competition, including technological advances, new products and patents attained by competitors; challenges to patents; the ability of the company to successfully execute strategic plans; product efficacy or safety concerns resulting in product recalls or regulatory action; manufacturing difficulties and delays; impact of business combinations and divestitures; challenges inherent in new product development, including obtaining regulatory approvals; 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. Ethicon Endo-Surgery, Inc., the Ethicon companies and Johnson & Johnson do not undertake to update any forward-looking statement as a result of new information or future events or developments.
* Ethicon represents the products and services of Ethicon, Inc., Ethicon Endo-Surgery, Inc. and certain of their affiliates.