October 16, 2014 by Brian Johnson
More than 2½ years after it spent $21.3 billion on Synthes, Johnson & Johnson continues to take hefty charges on integrating the orthopedics company into its DePuy franchise.
The cost of integrating its most recent mega-merger are adding up for healthcare giant Johnson & Johnson (NYSE:JNJ), which this week revealed another $167 million hit to the bottom line from its $21.3 billion buyout of Synthes in the winter of 2012.
The latest charge brings the total price tag of integrating the companies to $800 million over the last 7 quarters, almost as much as the $899 million in special charges the company paid in 2012, the year it closed the deal.
During its earnings call with analysts this week, Deutsche Bank analyst Kristen Stewart expressed surprise over the continuing drag on the business.