J&J to invest $13 billion in MedTech business through Shockwave deal | WGN Radio 720

Johnson & Johnson Makes $13 Billion Deal for Shockwave Medical

In a major move to expand its presence in heart care, Johnson & Johnson has announced a $13 billion deal to acquire Shockwave Medical. The deal, which has already been approved by both companies’ boards of directors, will see J&J pay $335 in cash for each share of Shockwave.

Founded in 2009, Shockwave Medical specializes in intravascular lithotripsy technology, using sonic pressure waves to crack calcium lesions in arteries and restore blood flow. This innovative technology is used to treat coronary artery and peripheral artery disease, offering a promising solution for patients with clogged arteries.

The acquisition is part of J&J’s strategy to strengthen its MedTech division, following a previous $16 billion deal for Abiomed. J&J Chief Financial Officer Joseph Wolk expressed optimism about the growth potential of Shockwave’s technology, projecting annual sales to reach at least $1 billion.

While the deal is expected to dilute J&J’s adjusted earnings in the short term, the company is confident in the long-term benefits of the acquisition. The transaction is still subject to regulatory and shareholder approvals, with a target closing date in the middle of this year.

Shares of both companies saw a positive response to the news, with J&J’s stock edging up and Shockwave Medical’s stock climbing significantly. The market’s reaction reflects the potential impact of this strategic acquisition on the future of heart care technology.