Johnson & Johnson Sells Remaining Stake in Elan (JNJ)
Healthcare product company, Johnson & Johnson (JNJ) reported on Friday that it has sold 25.4 million shares of Elan Corp, ending its relationship with the Ireland based company..
In 2009, JNJ took a 18% stake in the biotechnology company for $1 billion to take over its development in bapineuzumab.
The drug, which was created to slow Alzheimer’s by reducing amyloid plaque buildup, did not pass its final testing.
JNJ sold back 82 million shares back to Elan on April 18, and now it has dumped its remaining stake in the company for $332.5 million.
The sale is not expected to impact JNJ’s full year earnings. The company reported that it expects to see earnings between $5.35 to $5.45 per share.
Johnson & Johnson shares were mostly flat during premarket trading Friday. The stock is up 21% YTD.
The Bottom Line
Shares of Johnson & Johnson (JNJ) have a 3.11% yield, based on Thursday’s closing price of $84.91.
Johnson & Johnson (JNJ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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