We are operating in a large vacuum. It's exceedingly difficult to speculate.
While Johnson & Johnson has the clear technology lead, the risk they run is in setting the price. If the price is favorable, doctors will reward them when new products come to market.
I would venture that we are now outside of gentlemanly territory,
This offer is superior. This offer promises a higher price, stock with better appreciation potential, commitments to do what it takes to avoid antitrust concerns, and a firm timeline.
If they do negotiate a lower price, they may open themselves up to litigation by essentially conceding that there has been a problem under management's watch.
While it could be a knock-out blow, at what point are we overpaying? I think we could be getting close to that point based on the cardiac rhythm business.
They are buying a crown jewel and they are getting it at a reasonable valuation.
When you have a look at the potential liability they have in infringement cases, you basically could save multiple billions of dollars.
The fact that they found something else is not a concern. It's almost to be expected. When a policeman pulls you over for speeding and decides to look around your car, there's a good likelihood that if he wants to, he can find something to give you a citation for.
You can't just sit back on your laurels. You have to constantly innovate.