The agreement followed an FTC investigation into the company's acquisition of Synthes, a Swiss orthopedic medical-device company with U.S. headquarters in West Chester, Pa., for $21.3 billion in cash and stock. The FTC concluded that the combined wrist-fracture treatment systems of the New Brunswick, N.J.-based healthcare company and Synthes would make up more than 70% of the domestic market. The FTC argued that the deal would eliminate J&J's only significant competitor for the devices and allow the company to unilaterally raise prices.
Johnson & Johnson plans to divest DePuy Orthopaedics' entire worldwide trauma business, including the DVR system for wrist fractures, to Biomet, a Warsaw, Ind.-based devicemaker that had announced its offer in April to acquire DePuy Orthopaedics' worldwide trauma business.
The Synthes acquisition, which was announced in April 2011, is the largest to date for Johnson & Johnson.