Deals
J&J CEO Prefers Smaller Acquisitions Even as Cash Pile Grows
- Getting value from large deals `much more challenging': Gorsky
- Health-care company's cash balance swells to $37.3 billion
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Johnson & Johnson’s expanding cash hoard is fueling speculation of a major acquisition, but Chief Executive Officer Alex Gorsky isn’t talking like someone with a big deal in the offing.
In an interview, Gorsky said he’s more partial to small deals for treatments in the early stage of development, not the kind of cost-saving megamergers some of his competitors are pursuing. So while Pfizer Inc. takes over Allergan Plc and Medtronic Plc reaps savings from its Covidien Plc deal, Gorsky is skeptical that a large transaction would work for J&J.