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Highlights:
- The ABMD stock soared over 50 per cent on Tuesday, November 1.
- The company announced its Q2 FY23 earnings results today, before the opening bell.
- ABIOMED also announced entering into a definitive agreement to be acquired by another healthcare company.
The stocks of the publicly traded medical device firm, ABIOMED, Inc. (NASDAQ:ABMD) noted significant growth on Tuesday, soon after the market opened on Tuesday, November 1.
The ABMD stock was among the top percentage gainers on November 1, gaining over 50 per cent, after the firm announced its earnings and recent acquisition news.
Let's look at the acquisition news with Kalkine Media®, before exploring its latest quarter earnings.
ABIOMED, Inc. acquisition news:
ABIOMED is a medical device technology firm that specializes in mechanical circulatory support devices and provides on-site, on-call, and online clinical support.
The healthcare firm announced on Tuesday, that it has entered into a definitive agreement with Johnson & Johnson (NYSE:JNJ) under which the latter would acquire all its outstanding shares through a tender offer.
Johnson & Johnson would pay an upfront payment of US$ 380 per share in cash. The total enterprise would be around US$ 16.6 billion at the previously mentioned price.
As per the announced agreement, Abiomed shareholders would receive a non-tradeable contingent value right or CVR. The CVR would entitle the holder to receive as much as US$ 35 per share in cash, depending on certain commercial and clinical milestones achievements.
The board of directors of both firms unanimously nodded to the deal.
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Second quarter fiscal 2023 financial results:
The medical device company said that its revenue rose 11 per cent YoY in constant currency to US$ 266 million in Q2 FY23. On the reported basis, its revenue soared seven per cent YoY.
The company's revenue noted a double-digit constant currency growth for the seventh consecutive quarter, it said. the company's global revenue also rose seven per cent YoY to US$ 253 million on a reported basis.
ABIOMED's GAAP net income per diluted share rose 87 per cent YoY to US$ 2.32 apiece in the quarter.
Bottom line:
The price of the ABMD stock was up 50.70 per cent at 9:35 am ET on November 1, trading at US$ 379.885. The trading volume of the US$ 17.27 billion market cap firm was around 1.62 million during writing.
Meanwhile, the healthcare firm said during its earnings release on November 1, that it had US$ 837 million in cash, cash equivalents, and marketable securities as of September 30, 2022, with no debt.
