Johnson & Johnson
(NYSE: JNJ)
today announced it completed its $13.1 billion acquisition of Shockwave Medical.
The company previously confirmed plans to buy the intravascular lithotripsy (IVL) technology maker in April. Media reports previously linked Johnson & Johnson with an interest in purchasing the intravascular lithotripsy (IVL) technology maker last year.
Under the agreement, J&J acquired all outstanding shares of Shockwave for $335 per share in cash. Shockwave Medical will now operate as a business unit within J&J MedTech. Shockwave’s common stock stopped trading on Nasdaq.
“Through Innovative Medicine and MedTech, Johnson & Johnson is transforming the trajectory of cardiovascular disease, one of the leading causes of death globally. We are delighted to welcome the Shockwave team to Johnson & Johnson and look forward to bringing their innovative IVL technology to more patients around the world,” CEO Joaquin Duato said in a news release.
Shockwave Medical’s IVL technology uses sonic pressure waves to treat people with calcified arterial plaque. A catheter-based treatment, it can help restore blood flow by cracking calcium lesions. Its uses include in both coronary artery disease (CAD) and peripheral artery disease (PAD), often in combination with stenting. Shockwave also offers a refractory angina treatment through its acquisition of Neovasc a year ago.
This acquisition follows a series of cardiovascular plays by the medtech giant. That includes the 2022 buy of Abiomed for $16.6 billion and the $400 million acquisition of Laminar last November. Shockwave’s commercially available intravascular lithotripsy platform complements J&J’s Abiomed heart recovery and Biosense Webster electrophysiology technologies.
“Completing this acquisition is a significant milestone in the expansion of our leadership position in the medtech industry. Shockwave’s differentiated solutions and robust pipeline represent an exciting opportunity for Johnson & Johnson MedTech to bring more innovations to patients in one of the largest areas of unmet medical need. We are excited to begin collaborating directly with the Shockwave team and look forward to a bright future together,” Tim Schmid, EVP and worldwide chair of J&J MedTech said.
Shockwave Medical will become J&J MedTech’s thirteenth priority platform, according to the news release. It is expected to generate annual sales of at least $1 billion. The company expects the transaction to accelerate revenue growth for J&J and J&J MedTech. Johnson & Johnson said it expects the transaction to be accretive to operating margin, but considering financing costs, is expected to dilute adjusted EPS by approximately 10¢ in 2025 and 17¢ in 2025.
