It looks like Johnson & Johnson (NYSE:JNJ) found something to do with all its money parked in Europe. Last week management announced it was doing a $30 billion acquisition of Actelion, a Swiss-based pharmaceutical and biotechnology company formed in 1997. Actelion is known for its original innovations and fruitful R&D culture. J&J will acquire the company and its portfolio, but will also spin off Actelion's R&D business.
This acquisition was done to boost J&J's pharmaceutical portfolio, mostly by diversifying it into pulmonary hypertension drugs, Actelion's specialty, which generated over $2 billion in sales in 2015. J&J's drug portfolio is already quite strong, with many 'late stage' developments. This acquisition diversifies the company's drug portfolio, and it also accelerates its revenue growth. This article takes a look at J&J's acquisition, and whether the company is a 'buy' right here.
