Johnson & Johnson and Crucell have entered negotiations to discuss J&J’s potential purchase of all outstanding shares of Crucell for approximately $2.3 billion in cash. J&J, through an affiliate, currently holds approximately 18% of Crucell shares and has submitted a statement to the U.S. SEC related to its change in investment intent with respect to Crucell.

This potential transaction would combine Crucell’s expertise in the manufacture, discovery and commercialization of vaccines with J&J’s experience in the development and marketing of pharmaceutical products, as well as its strong platform in the vaccine market. Should the transaction occur, J&J expects to maintain Crucell’s existing facilities and to retain its senior management and current employment levels. Crucell would serve as the center for vaccines within the J&J pharmaceutical group.

The transaction remains subject to negotiation of terms of a definitive agreement and internal approvals of J&J management and the management and supervisory boards of Crucell.