JOHNSON & JOHNSON
TRENTON, N.J.—
Johnson & Johnson’s chief financial officer says the company is considering alternatives to its planned acquisition of troubled heartdevice maker Guidant Corp. The health- care company also posted a 12 per cent jump in third- quarter profit yesterday amid strong overseas sales. The acquisition, originally set to close in September, has been in question because of Guidant’s repeated recalls of pacemakers and defibrillators. The comments by J&J finance chief Robert Daretta were the first public indication that the deal may be in trouble, rather than just delayed.
“ As it relates to the previously announced product recalls at Guidant, and the related regulatory investigations and other developments, we believe that these are serious matters,” Daretta told analysts during a morning conference call. “ In light of these matters and their impact, we are continuing to consider the alternatives under our merger agreement.’’
Daretta said J&J still expects a key regulatory approval, by the Federal Trade Commission, later this month, but he declined to answer any questions on the deal.
Guidant spokesman Steve Tragash declined to comment.
Meanwhile, J&J said its third- quarter profit grew to $ 2.63 billion ( U. S.), or 87 cents per share, for the July- September period from $ 2.34 billion, or 78 cents, a year earlier. The maker of contraceptives, contact lenses, prescription drugs and baby- and skin-care products said revenue rose 7 per cent to $ 12.31 billion from $ 11.55 billion last year.
Analysts surveyed by Thomson First Call expected earnings per share of 86 cents on revenue of $ 12.51 billion.