NEW BRUNSWICK, N.J., Nov. 2 (UPI) -- Johnson & Johnson said Wednesday that recent Guidant defibrillator recalls are "serious" and it may scrap plans to buy the device firm.
The June recall of Guidant's implantable cardiac defibrillators are "serious matters affecting both Guidant's short-term results and long term outlook," the New Brunswick-N.J.-based health-products giant said in a statement.
Because Guidant's product woes -- which sent its stock tumbling nearly 20 percent -- have materially affected the device firm's business, J&J is not required under the agreement's terms to close the pending $25.4 billion cash and stock buyout.
The pending purchase would be the third-largest merger in the United States in the past year.
The company said it has discussed with Guidant a possible deal restructuring, but added that it could not assure that such talks, if resumed, would result in a new agreement that would put the mega-deal back on track.
Meanwhile, J&J said that the Federal Trade Commission has approved the sale, conditioned on J&J divesture of certain rights and assets of its businesses in medical products including drug-eluting stents.
