A merger makes sense but J&J needs to come up with a higher price tag

first_imgMonday 10 January 2011 8:35 pm A merger makes sense but J&J needs to come up with a higher price tag A MERGER between Smith & Nephew (S&N) and Johnson & Johnson (J&J) would certainly make sense. The orthopaedics business has struggled in the wake of the recession, and S&N is no exception. Sales at its flagship hip reconstruction business fell in the first nine months of 2010 compared to a year earlier, largely due to price pressure in the US and EU. Its interests in endoscopy and advanced wound management have helped soften the blow, although not entirely. A merged S&N and J&J would have a combined market share of between 35 and 37 per cent (compared to S&N’s 10 to 17 per cent) in hips and knees, giving the firm a market leading position ahead of No. 1 player Zimmer, on 22 to 28 per cent. Now J&J needs to come up with a more sensible price tag. whatsapp KCS-content Show Comments ▼ whatsapp Read This Next’Pose’ Creator Steven Canals on Life After His Groundbreaking Show: ‘I’mThe Wrap’The Boys’ Star Aya Cash Took Inspiration From YouTube, TikTok and SteveThe WrapHow HGTV’s ‘Renovation Island’ Changed Bryan and Sarah Baeumler’sThe Wrap’Bridgerton’ Stars Phoebe Dynevor and Nicola Coughlan on Daphne andThe WrapBest Wine Gifts & Wine Accessories at Every PriceGayot’Hitman’s Bodyguard’s Wife’ Earns $17 Million 5-Day Opening as Box OfficeThe WrapFox News’ Mark Levin Says Capitol Riot Suspects ‘Would Be Treated Better’The WrapEverything We Know, or Think We Know, About the Time-Keepers on ‘Loki’The Wrap’The Crown’: What Went Into Finding Princess Diana and Margaret ThatcherThe Wrap Share Tags: NULLlast_img read more