St. Jude Medical Merger Case Study

Recently this year, Abbott laboratories an international healthcare company will obtain possession of St. Jude Medical in an agreement that is valued at $25 billion. This contract between the two companies is considered the largest, by combining and increasing their business with doctors and hospitals. More and more companies are merging with one another to obtain access to the latest technologies, as well as reducing their overall costs. Since recently, St. Jude Medical's shares have been drastically dropping, this merger with Abbott will not only increase their business but, it will also improve the end result of patient's lives. According to USA Today, after the announcement was release publicly, St. Jude Medical's shares went up 25.6% rising to $77.79 a share. Although, Abbott's stock decline 7.8% to $40.42. Abbott also has plans to take over St. Jude Medical's debt of $5.7 billion. They viewed this new investment as an opportunity to introduce new medical products beyond the cardiovascular field globally. With this new merger, they project that by 2020 the combine companies will bring in sales and profits in a $500 million pretax increase.
In addition, workers will be expose to newer technological changes, so training and continuing education will be extremely essential to provide the growing demand.
Even though, the anticipated merger between Abbott and St. Jude Medical is an excellent opportunity, other recommendations that can improve the performance of St. Jude Medical is to continue to striving to develop quality products that improve consumers health. With more thorough clinical trials of all their new devices. As well as emphasizing and regulating more product recalls when issues with their brand