Great Day For Israeli Biotech as Johnson and Johnson Buys Omrix

With all the bad news being reported about the state of the Israeli economy, it was great to hear the US giant Johnson & Johnson (NYSE: JNJ) has purchased the Israeli Biological sealant maker Omrix Biopharmaceuticals (NASDAQ:OMRI) for $438 million. It just goes to show that Israeli ingenuity is alive and well.

Johnson & Johnson company group chairman Alex Gorsky said, "Our partnership with Omrix has already expanded our capacity to provide innovative, next generation products that raise the standard of surgical care. We believe this transaction will further enhance our efforts to bring new, science-based products to patients and the healthcare professionals who treat them."

It just goes to show that large multi-national companies will continue to look to Israel fro their R&D, instead of doing it in house where it is much cheaper. With global markets reeling, there has been very little in the way of M&A( mergers and acquisitions). The fact that an Israeli firm was acquired is truly something to be proud of.