Johnson & Johnson to Acquire Shockwave Medical for $12.5 Billion, Expanding its Cardiovascular Intervention Portfolio

Johnson & Johnson announced it has reached an agreement to purchase Shockwave Medical for $12.5 billion, a move that will bolster its array of medical devices used in treating heart diseases. The acquisition provides J&J with access to a device that employs shockwaves to break down calcified plaque in heart vessels, similar to the treatment for kidney stones. 

The total addressable market for similar therapies is estimated to be around $10 billion. This acquisition comes as part of J&J's strategy to strengthen its cardiac health division, following recent purchases of heart pump maker Abiomed for $16.6 billion and another heart-centric device maker, Laminar, for $400 million. The deal includes an offer of $335 per share in cash, representing a 17% premium to the stock's closing price in late March. It is expected to be financed through a combination of cash on hand and debt. 

Shockwave's catheter-based treatment known as intravascular lithotripsy (IVL) is utilized, often in combination with stents, to address two heart conditions caused by arteries clogged with calcium deposits. The company recorded product sales of $730.2 million last year. The transaction awaits approval from shareholders and regulatory bodies and is anticipated to be completed by mid-year 2024.