Johnson & Johnson is evaluating the costs of acquiring a biotechnology firm specializing in gene therapy. The acquisition cost is $5 billion, including integration and research costs of $1 billion. The biotech firm is expected to contribute $800 million annually in new product revenue.

Requirements:

• Present the acquisition costs and revenue projections in bullet points.
• Calculate the total acquisition, integration, and research costs.
• Determine the ROI and strategic fit of the biotechnology acquisition.
• Analyze the market potential and regulatory landscape for gene therapy products.
• Discuss the strategic rationale for expanding Johnson & Johnson's biopharmaceutical portfolio.
• Evaluate the financial impact of the acquisition on Johnson & Johnson's balance sheet.