On Friday, Johnson & Johnson revealed that it is planning to buy Crucell NV, Dutch biotech firm worth Euro1.75 billion ($2.29 billion) and is undergoing negotiations for the same. The deal would be beneficial for the vaccine businesses of America.

The news made the share price of Crucell NV climbed up more than 50% in Amsterdam trading, bringing it to Euro24.25 in the early sessions.

Johnson & Johnson already possess a 17.9% stake in Crucell, which it acquired last year. Now, the Company has bid for the leftover stake of Crucell for Euro24.75 per share in cash, which has priced the Company’s share at a premium of 58%, as per Crucell’s Thursday’s closing price.

The Companies said in a joint statement, "The companies expect that Crucell's strength in the manufacture; discovery and commercialization of vaccines would create a strong platform for Johnson & Johnson in the vaccine market".

Johnson & Johnson’s move to acquire vaccine business seems that it is foraying into a new area and it has plans of expansion. The Company has yearly sales of around $64 billion. It also carries out its biotech business from its Centocor unit.

Crucell manufacture a number of renowned vaccines and develop treatments. It was funded with $69 million by the U.S. Government for creating a universal treatment for the flu.