Johnson & Johnson to buy Shockwave Medical
Johnson & Johnson on Friday agreed to buy Shockwave Medical in a deal valued at $13.1 billion including debt, as it builds its cardiac-health-centric medical devices business to help drive growth.
Based in California, Shockwave Medical makes devices to treat the No. 1 cause of death in the United States. According to its website, the devices use shock waves to break down calcified plaque in a person’s heart vessels.
Johnson & Johnson is an American multinational manufacturer of medical devices, pharmaceutical products and consumer packaged goods. The company, founded in 1886, is headquartered in New Brunswick, New Jersey.
According to a company news release, Johnson & Johnson will pay $335 per share in cash for Shockwave in a deal approved by each company’s board of directors.
The acquisition of Shockwave extends Johnson & Johnson MedTech’s position in cardiovascular intervention, the company wrote in a statement released Friday.
“Cardiovascular intervention is one of the fastest-growing global medtech markets, with significant unmet patient need,” the release reads. “With the addition of Shockwave, Johnson & Johnson will expand its MedTech cardiovascular portfolio into two of the highest-growth, innovation-oriented segments of cardiovascular intervention – coronary artery disease (CAD) and peripheral artery disease (PAD).”
Shockwave is a leading, first-to-market provider of innovative intravascular lithotripsy technology for the treatment of calcified CAD and PAD, according to the release.
The transaction comes on the heels of Johnson & Johnson MedTech’s purchase of Abiomed, a leader in heart recovery, and Laminar, an innovator in left atrial appendage elimination for people with non-valvular atrial fibrillation, the release states.
“Johnson & Johnson has a long history of tackling cardiovascular disease,” CEO Joaquin Duato said. “Acquiring 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 MedTech Executive Vice President Tim Schmid said the move will bring Shockwave’s devices into the hands of more physicians globally.