Mergers and Acquisitions (M&A) developments in the pharmaceutical industry continue to unfold. Last year was a busy one for mergers and tax inversion deals, and 2015 is shaping up to look quite similar. Already this year, Pfizer has closed a deal to buy Hospira for $17 billion. In the most recent development, Cardinal Health Inc., a drug distribution company, announced plans to purchase Cordis for $1.94 billion.
Cordis is the vascular technology unit of pharmaceutical and medical device maker, Johnson & Johnson. The sale is part of Johnson & Johnson’s exit from the heart stent business, which complements Cardinal Health’s initiative to expand its cardiovascular product offering. Following the announcement today, shares of both companies rose. The deal will likely be completed by the end of the year.