Pharmaceutical giant Johnson & Johnson has agreed to buy medical technology firm Guidant for $25.4bn (£13bn). Guidant is a key producer of equipment that combats heart problems such as implant defibrillators and pacemakers. Analysts said that the deal is aimed at offsetting Johnson & Johnson's reliance on a slowing drug business. They also pointed out that more mergers are likely because the drug and healthcare industries are fragmented and are under pressure to cut costs. A number of Johnson & Johnson's products are facing patent expirations, while the company is also battling fierce competition from generic products. Meanwhile, demand for defibrillators, which give the heart a small electric shock when an irregular heartbeat or rhythm is detected, is expected to increase, analysts said. The move by Johnson & Johnson has been widely expected and the firm will pay $76 for each Guidant share, 6% more than Wednesday's closing price. Analysts say that US antitrust regulators could force the firms to shed some overlapping stent operations. Stents are tubes that are used to keep an artery open after it has been unblocked.
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