Actelion

Actelion is a biopharmaceutical company specializing in the creation and development of innovative treatments, including rare diseases. Headquartered in Basel, Switzerland, the company was founded in 1997. In 2009, a representative office was opened in Russia.

2018: $360 million fine for bribing charitable foundations

On December 6, 2018, it became known that Johnson & Johnson would pay the American government $360 million in the case of using a charity to pay bribes to patients.

The investigation was conducted in the case of Actelion Pharmaceuticals, which is engaged in the production of expensive drugs for the treatment of lung diseases and which Johnson & Johnson acquired in 2017.

Johnson & Johnson to pay $360 million to bribe charitable foundations

Federal prosecutors said Actelion collected data on patients receiving care from the nonprofit Caring Voice Coalition and acted in such a way that the money donated went to help only those patients who used that firm's drugs, not competing companies. Actelion continued the practice even after the charity itself alerted the company.

At the same time, according to prosecutors, in 2014 and 2015, Actelion increased the price of its main drug Tracleer by almost 30 times compared to the inflation rate. But patients continued to buy the medicine, although under other conditions they might not have done so.

Actelion also referred patients who were Medicare members and fell under free treatment to the Caring Voice Coalition. Thus, the company did not provide drugs to patients eligible for them, and forced the insurance company to cover the costs of treatment.

Drug companies often help patients through coupons or through other financial instruments. These payments are related not only to benevolence, but also to the intention to calm the outrage over the rise in drug prices. Insurers then cover most of the cost. But federal USA laws prohibit companies from providing such ​​finansovuyu assistance to beneficiaries of the nation's health insurance and Medicaid programs Medicare because it is considered an incentive to buy drugs from specific manufacturers.

Actelion spokeswoman Caroline Pavis said the company intends to comply with all laws and regulations.^[1]

2017: Johnson & Johnson buys Actelion for $30bn

At the end of January 2017, the American manufacturer of medical solutions Johnson & Johnson announced the purchase of Actelion. The transaction will cost $30 billion, taking into account the detachable R&D division of Actelion.

Under the terms of the agreement, Johnson & Johnson will pay $280 per share of Actelion, which is 23% more than the value of the company's securities the day before the deal was announced and 80% more than the quotation rate in November 2016, when the media reported on negotiations on the merger of Johnson & Johnson and Actelion. After the official announcement of the merger, Actelion shares rose 20%.

Actelion headquarters in Switzerland

Until the deal closes , R&D NewCo will be allocated from Actelion, which will engage in research, development and clinical trials of new drugs. It will be headed by the founder and CEO of Actelion, Jean-Paul Clozel, and the chairman of the board of directors will be the chairman of Actelion, Jean-Pierre Garnier.

The authorized capital of the company will be $1 billion. Johnson & Johnson will receive a 16 percent stake in R&D NewCo, as well as the right to increase its stake by another 16 percent. The remaining shares will be distributed among Actelion shareholders.

According to one of the Swiss traders cited by Reuters, $30 billion is too high a price, which is 30 times more than Actelion's expected earnings in 2018, especially since the deal includes only a small part of the R&D division.

At the same time, we are talking only about a tenth of the market capitalization of Johnson & Johnson. They are finally investing money accumulated in Europe, - said the interlocutor of the news agency.

Jefferies analysts believe that Johnson & Johnson's offer is unlikely to be interrupted, and the merger with Actelion does not threaten the development of competition in the pharmaceutical market. Berenberg experts called the deal "fantastic for Actelion and its shareholders," given concerns about the company's long-term sales growth prospects for its core products.^[2]

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