The stocks of medical tech company Abiomed jumped as much as 50% on Tuesday following the news it has reached a merger agreement with pharma giant Johnson & Johnson worth $16.6 billion. However, Abiomed will continue operating as a standalone business.

J&J announced in a statement earlier today the deal was approved by both companies' boards of directors. Abiomed's work in the field of heart failure and recovery is expected to support J&J's expansion into the MedTech sector, per the statement, while also accelerating sales growth starting from 2024.

The transaction is scheduled to be finalized in the first trimester of next year. Abiomed's shares surged to $379 apiece on Nasdaq at 12:46 pm ET.