Johnson & Johnson plans to take full control of Crucell for around $2.29 billion

Netherlands-based biotechnology firm Crucell NV (Euronext: CRX) this morning revealed that it is in negotiations for a potential public offer by US health care giant Johnson & Johnson (NYSE: JNJ) for all outstanding ordinary shares of Crucell not already held by J&J and its affiliates, which currently own around 17.9% of the outstanding shares of the Dutch firm which it acquired last year. (The Pharma Letter September 28, 2009).

Under the terms of the negotiations, which are at an advanced stage, J&J or an affiliate would acquire all outstanding equity of Crucell that it does not already own for approximately 1.75 billion ($2.29 billion) in cash, which represents a purchase price of 24.75 per share and a 58% premium to its closed price of 15.70 euros yesterday.

This potential transaction would enable Crucell to benefit from J&J’s expertise and experience in the development and commercialization of pharmaceutical products. The companies expect that Crucell's strength in the manufacture, discovery and commercialization of vaccines would create a strong platform for the US drugmaker in the vaccine market.