Johnson & Johnson to buy Biopsys

Healthcare giant Johnson & Johnson of New Brunswick, NJ, has agreed to buy minimally invasive surgical developer Biopsys Medical of Irvine, CA, in a stock swap valued at $310 million. Biopsys manufactures Mammotome, a biopsy gun that uses a vacuum method for removing breast tissue. The merger is subject to approval by Biopsys shareholders and regulatory authorities.

The amount of Johnson & Johnson stock that will be issued for each Biopsys share will be based on a formula in which $27.55 will be divided by the average closing price per J&J share for each of the 20 trading days preceding the last full trading day prior to a meeting of Biopsys shareholders to approve the merger. Biopsys shares closed at $26.69 the day the merger was announced.