Johnson & Johnson (NYSE:JNJ) (J&J) will bolster its portfolio of medical devices targeting heart disease with its $13.1 billion acquisition of Shockwave Medical.
The companies announced on Friday that J&J will acquire Shockwave for $335 per share in cash funded through a combination of cash on hand and debt.
Following the acquisition, expected to close by mid-year 2024, Shockwave will operate as a business unit with J&J MedTech.
J&J expects Shockwave to ultimately become J&J MedTech’s 13th priority platform, as defined by annual sales of at least $1 billion.
Shockwave offers the only commercially available intravascular lithotripsy (IVL) technology for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD).
IVL is a minimally invasive, catheter-based treatment for calcified arterial lesions, which can reduce blood flow and cause pain or a heart attack.
J&J highlighted that the addition of these two highest-growth segments of cardiovascular intervention complements its recent acquisitions of heart recovery leader Abiomed and Laminar, which specializes in left atrial appendage elimination for patients with non-valvular atrial fibrillation (AFib).
“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,” J&J CEO Joaquin Duato commented.
J&J Medtech Executive Vice President and Worldwide Chairman Tim Schmid added: “Shockwave offers a truly differentiated opportunity to further enhance our leadership position in Medtech, expand into additional high-growth segments, and ultimately transform the future of cardiovascular treatment. Shockwave’s IVL technology for treating CAD and PAD, and its strong pipeline, are in a class of their own.”
Shockwave shares added 1.7% to $352.50 on the news, while J&J shares traded 0.3% lower at $152 late morning on Friday.