J&J, Crucell Reach Acquisition Agreement

Johnson & Johnson and Crucell N.V. have entered an agreement under which J&J, through an affiliate, would acquire all outstanding equity of Crucell for approximately $2.4 billion in cash. J&J currently owns 17.9% of Crucell’s outstanding shares.

Once the offer is finalized J&J expects to maintain Crucell’s existing facilities, to retain its senior management and, generally, to maintain current employment levels. J&J also plans to keep Crucell as the center for vaccines within the J&J pharmaceutical group, and to maintain Crucell’s headquarters in Leiden.

In September 2009, the two companies entered an agreement to develop a universal influenza monoclonal antibody and a universal flu vaccine, as well as a long-term innovation collaboration for the development of monoclonal antibodies and/or vaccines directed against as many as three other infectious and non-infectious disease targets.

“I am looking forward to Crucell becoming a Johnson & Johnson company. I am particularly excited that, by retaining our innovative and entrepreneurial culture and dedicated employees, combined with the strength of Johnson & Johnson, we can further accelerate and expand our product and pipeline development, as well as our ability to provide vaccines to people around the world,” said Ronald Brus, chief executive officer of Crucell.

The offer is expected to be finalized by the end of November and the transaction is expected to close 1Q11.