Johnson & Johnson completes $13 billion purchase of Shockwave Medical

Johnson and Johnson

(NYSE: JNJ)
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announced today that it has completed the acquisition of Shockwave Medical for $13.1 billion.

The company has already confirmed plans to purchase a manufacturer of intravascular lithotripsy (IVL) technology in April. Media reports have previously linked Johnson & Johnson with interest in purchasing the maker of intravascular lithotripsy (IVL) technology last year.

Under the agreement, J&J acquired all outstanding shares of Shockwave at a price of $335 per share in cash. Shockwave Medical will now operate as a business unit within J&J MedTech. Shockwave’s common stock has ceased trading on the Nasdaq.

“Through innovative medicine and MedTech, Johnson & Johnson is changing the trajectory of cardiovascular disease, one of the leading causes of death worldwide. We are thrilled to welcome the Shockwave team to Johnson & Johnson and look forward to bringing their innovative IVL technology to more patients around the world,” said CEO Joaquin Duato in a press release.

Shockwave Medical’s IVL technology uses sound pressure waves to treat people with calcified arterial plaque. A catheter-based procedure that can help restore blood flow by breaking up calcium lesions. Its use covers both coronary artery disease (CAD) and peripheral arterial disease (PAD), often in combination with stenting. Thanks to its acquisition of Neovasc a year ago, Shockwave also offers refractory treatment for angina.

This acquisition follows a series of cardiovascular moves by the health technology giant. This includes the $16.6 billion purchase of Abiomed in 2022 and the $400 million acquisition of Laminar last November. Shockwave’s commercially available intravascular lithotripsy platform complements J&J’s Abiomed cardiac recovery technology and Biosense Webster electrophysiology.

“The completion of this acquisition is a significant milestone in strengthening our leadership position in the health technology industry. Shockwave’s differentiated solutions and robust designs present 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 working directly with the Shockwave team and look forward to a bright future together,” said Tim Schmid, vice president and worldwide president of J&J MedTech.

The press release states that Shockwave Medical will become J&J MedTech’s thirteenth priority platform. 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 deal to be accretive to operating margin, but based on financing costs, it is expected to dilute adjusted EPS by approximately 10 cents in 2025 and 17 cents in 2025.