Guidant Corp., Indianapolis, sued Johnson & Johnson in federal court in New York to force the healthcare conglomerate to comply with the terms of its $25.4 billion acquisition agreement. J&J didn't close the deal last week despite the Federal Trade Commission's conditional approval due to recent recalls of Guidant's electrophysiology products.
Guidant also released its third-quarter results, reporting a nearly 60% drop in net income to $65 million, or 20 cents per share, for the quarter ended Sept. 30, compared with earnings of $161 million, or 50 cents per share, in the year-ago quarter. Revenue fell 14% to $795 million. Guidant said the results reflected the temporary recall of its leading implantable defibrillator devices in July and part of August as well as other product recalls and physician advisories. The declines were partially offset by growth in coronary stent revenue, Guidant said.