J&J Bids $2.3 Billion for Crucell

Johnson & Johnson has put down a bid of $2.3 billion to buy a part of Crucell "that doesn't already own a bid" so that Johnson & Johnson can have more control in the area of vaccines. Johnson & Johnson has already stated that if it does gain control of Crucell, they will keep all "senior management and its existing facilities."

However, a representative of Crucell, shareholder Gertjan van der Baan, says that this bid is too low due to the potential of the company if it does join up with Johnson & Johnson.

Johnson & Johnson wants the control of vaccines because vaccines have more sales and profits than prescription-drugs with not as much competition. As of now, Crucell and Johnson & Johnson are working together to make a vaccine for all flu strains which is in its early stages of production.

If Johnson & Johnson buys Crucell, Johnson & Johnson will earn a very large profit from these vaccines. The price of buying the company will probably be covered by profits from the vaccines in a short amount of time. But what if the vaccines do not help the company enough? Will the vaccines still have been considered a "good buy" if Johnson & Johnson is still helping humanity in the long run because these two companies can work together to make better vaccines than we have today? Or will there be no affect because the vaccines are already available to the consumer through Crucell so nothing will change if Johnson & Johnson buys Crucell?