Johnson & Johnson JNJ, -0.19% subsidiary Ethicon, Inc. has agreed to acquire surgical robotics company Auris Health, Inc. for approximately $3.4 billion in cash, the health-products company announced Wednesday. The deal also includes contingent payments of up to $2.35 billion that can be made upon reaching certain milestones. Auris’s founder and chief executive, Frederic Moll, will join Johnson & Johnson once the deal closes. The company said the acquisition will play an important role in its lung cancer initiative and is a significant step for its entry into the area of robotic surgery. The deal is expected to close by the end of the second quarter of 2019. Shares of Johnson & Johnson have gained 4% in the year to date, while the Dow Jones Industrial Average DJIA, +0.36% has gained 9%.
Johnson & Johnson shares were trading at $133.87 per share on Wednesday afternoon, down $0.29 (-0.22%). Year-to-date, JNJ has gained 3.73%, versus a 10.03% rise in the benchmark S&P 500 index during the same period.
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