Guidant Has New Deal
"J&J is looking to ensure that they've got the ability to increase their growth quarter to quarter," according to Steve Brozak of WBB Securities. "Their further expansion into the medical devices market provides them with that," he says. Brozak and WBB don't own J&J or Guidant shares.
Darretta expects the Guidant acquisition to add 3% to J&J's average annual growth rate in 2006 through 2008.
Regulators cleared J&J, based in New Brunswick, N.J., to acquire Guidant on Nov. 2, but the transaction has been in question ever since Guidant was hit in recent months by a series of recalls of its pacemakers and implanted defibrillators.
After J&J said last month it would "consider alternatives" under its agreement, Guidant's shares fell amid speculation that the acquisition plans would be canceled. Guidant later
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