Johnson & Johnson Acquires Shockwave Medical for $12.5 Billion to Expand its Heart Device Business

By Jace Dela Cruz

Apr 06, 2024 12:29 AM EDT

IRVINE, CALIFORNIA - OCTOBER 17: The Johnson & Johnson logo is displayed at company offices on October 17, 2023 in Irvine, California.
(Photo : Mario Tama/Getty Images)

Johnson & Johnson has announced its acquisition of Shockwave Medical for a staggering $12.5 billion, a move aimed at expanding its array of medical devices utilized to treat heart ailments. 

The definitive agreement between Johnson & Johnson and Shockwave Medical solidifies the acquisition at $335.00 per share in cash, equating to an enterprise value of approximately $13.1 billion, including acquired cash. 

Johnson & Johnson Acquires Shockwave Medical for $12.5 Billion

This acquisition enables Johnson & Johnson to diversify its MedTech cardiovascular portfolio, particularly in two of the most rapidly expanding and innovation-centric cardiovascular intervention segments-coronary artery disease (CAD) and peripheral artery disease (PAD).

Shockwave Medical boasts an intravascular lithotripsy (IVL) technology for treating calcified CAD and PAD. IVL, a minimally invasive catheter-based procedure, targets calcified arterial lesions that impede blood flow, leading to discomfort or even heart attacks. 

By utilizing sonic pressure waves to fracture calcium lesions, IVL aids in restoring blood flow, often in conjunction with stenting. Notably, Shockwave is the sole provider of commercially available IVL technology and has reported treating approximately 400,000 patients worldwide.

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Shockwave's IVL Technology

"With our focus on Innovative Medicine and MedTech, Johnson & Johnson has a long history of tackling cardiovascular disease - the leading cause of death globally," Joaquin Duato, Chairman and Chief Executive Officer of Johnson & Johnson said in a press release statement.  

"The acquisition of Shockwave and its leading IVL technology provides a unique opportunity to accelerate our impact in cardiovascular intervention and drive greater value for patients, shareholders and health systems," Duato added.

According to USA Today, the transaction follows J&J MedTech's recent acquisition of Abiomed, a prominent player in heart recovery, and Laminar, a pioneer in eliminating left atrial appendage for individuals with non-valvular atrial fibrillation. 

J&J MedTech Executive Vice President Tim Schmid expressed his excitement for the expansion, stating that it will allow a broader range of physicians worldwide to access Shockwave's devices.     

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