Johnson & Johnson to Acquire Tibotec- Virco to Expand Portfolio of Treatments For Infectious Diseases and Add to R&D Capability

- Johnson & Johnson expects to incur one-time charge of approximately $145 million in the second quarter

26-Mar-2003

Johnson & Johnson today announced it has signed a definitive agreement to acquire all of the assets of Tibotec- Virco NV, a privately-held biopharmaceutical company focused on developing anti-viral treatments, with several promising compounds in development for the treatment of infectious diseases including HIV. The transaction is valued at approximately $320 million in cash and debt.

Johnson & Johnson is expected to incur a one-time charge of approximately $145 million, or $0.05 per share, upon closing, reflecting the write-off of in- process research and development costs. The transaction is anticipated to close in the second quarter of 2002 subject to customary closing conditions and regulatory approvals. Excluding one- time charges, the acquisition is not expected to impact earnings for 2002 or 2003.

"Tibotec-Virco will provide a good strategic fit with our current pharmaceutical research and development operations," said Dr. Per Peterson, chairman, Research & Development for the pharmaceuticals group of Johnson & Johnson."By combining Tibotec-Virco's expertise with our own research and development activities, we will expand our drug discovery and development capabilities, particularly in the field of anti-viral therapies."

Headquartered in Mechelen, Belgium, Tibotec-Virco applies the latest techniques in ultra-high throughput screening, pharmacogenomics, molecular biology and artificial intelligence to discovering and developing new drugs. The company has drug discovery and development programs focusing on potential new drugs that are active against drug-resistant strains of HIV, including two products in early clinical development. Tibotec-Virco also has early stage research programs concentrating on the development of treatments for hepatitis C and other infectious diseases. In addition to its drug discovery operations, Tibotec-Virco provides HIV drug resistance testing and other analytical services under the name of Virco. The company has operations in Mechelen, Belgium, Durham, North Carolina, and Dublin, Ireland.

"Becoming part of the Johnson & Johnson Family of Companies will give us the long- term financial stability needed to fulfill our mission of discovering and developing new anti-viral drugs," said Dr. Rudi Pauwels, chief scientific officer and one of the founders of Tibotec-Virco together with Dr. Paul Stoffels. "We will be able to access the research, development and marketing resources of Johnson & Johnson while maintaining the flexibility necessary for truly innovative and cutting-edge research."

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