Medical device maker purchase impacts earnings outlook
- Johnson & Johnson acquires medical device maker Laminar Inc.
- Deal will reduce full-year earnings per share
- Acquisition cost $400 million upfront
- Laminar makes devices for patients with non-valvular atrial fibrillation
- Johnson & Johnson cuts full-year 2023 adjusted earnings per share guidance by 17 cents
- Expected reduction in fiscal 2024 earnings per share by about 15 cents
- Johnson & Johnson shares down 0.1% premarket
Johnson & Johnson has announced the acquisition of medical device maker Laminar Inc. The deal, costing $400 million upfront, will result in a reduction of the company’s full-year earnings per share. Laminar specializes in devices for patients with non-valvular atrial fibrillation, a condition that increases the risk of stroke. As a result of the acquisition, Johnson & Johnson is cutting its full-year 2023 adjusted earnings per share guidance by 17 cents and expects a reduction of about 15 cents in fiscal 2024 earnings per share. Johnson & Johnson shares were down 0.1% premarket.
Factuality Level: 8
Factuality Justification: The article provides factual information about Johnson & Johnson’s acquisition of Laminar Inc. and the impact it will have on the company’s earnings per share. The information is straightforward and does not contain any obvious bias or opinion.
Noise Level: 7
Noise Justification: The article provides information about Johnson & Johnson’s acquisition of Laminar Inc. and the impact it will have on the company’s earnings per share. However, it lacks in-depth analysis, scientific rigor, and intellectual honesty. It also does not provide any actionable insights or solutions. The article stays on topic and supports its claims with information about the deal and the company’s stock performance.
Financial Relevance: Yes
Financial Markets Impacted: Johnson & Johnson
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The news article pertains to a financial topic as it discusses Johnson & Johnson’s acquisition of medical device maker Laminar Inc. This acquisition will impact Johnson & Johnson’s earnings per share for the full-year 2023 and 2024.
Public Companies: Johnson & Johnson (JNJ)
Private Companies: Laminar Inc.
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