Johnson & Johnson to merge with Alza

Johnson & Johnson, New Brunswick, NJ, and Mountain View, CA-based Alza Corp. announced that they have entered into an agreement under which Johnson & Johnson will merge with Alza in a stock-for-stock exchange, valued at roughly $10.5 billion.

The boards of directors of Johnson & Johnson and Alza have approved the merger, which is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and the European Union merger control regulation, as well as other customary closing conditions. The agreement will also require the approval of Alza's shareholders.

"As a world leader in drug delivery technologies, Alza will bring us significant new product opportunities and will enable us to extend product life cycles," said William C. Weldon, a vice chairman of Johnson & Johnson. "Products and technologies from Alza will enhance existing Johnson & Johnson growth platforms in areas that include oncology, women's health, urology, pain management and the central nervous system." According to Weldon, Alza will retain its name and management as a free-standing Johnson & Johnson company, and will continue to develop new products based on proprietary drug delivery technologies for its other pharmaceutical customers.

"Becoming part of Johnson & Johnson will benefit all of our key audiences - including patients, shareholders, customers and employees," said Ernest Mario, chairman of the board and chief executive officer of Alza. "The merger will enable our shareholders to gain significant value through ownership of Johnson & Johnson shares. This merger will enable our products to reach more patients worldwide, and will allow for the application of advanced drug delivery technologies to a broader spectrum of new and existing pharmaceutical products. Our employees will benefit from the advantages that Johnson & Johnson, a large, highly successful corporation, can provide to enhance their personal and professional growth."

The transaction is expected to close by the early part of the third quarter of 2001. PR