J&J to invest an additional $13 billion in its MedTech business through Shockwave deal

Johnson & Johnson Makes $13 Billion Deal for Shockwave Medical

In a major move to bolster its heart care offerings, Johnson & Johnson has announced a $13 billion deal to acquire Shockwave Medical, a company specializing in technology that helps open clogged arteries.

The health care giant revealed on Friday that it will pay $335 in cash for each share of Shockwave, with the total deal value including cash acquired. The acquisition has already been approved by the boards of directors from both companies.

Founded in 2009, Shockwave is known for its intravascular lithotripsy technology, which uses sonic pressure waves to crack calcium lesions in arteries and restore blood flow. This innovative technique, similar to breaking up kidney stones, involves placing soundwave emitters inside angioplasty catheters to target calcified areas of the artery.

Shockwave’s revenue surged by 49% last year to $730 million, indicating the growing demand for its technology. Johnson & Johnson’s Chief Financial Officer, Joseph Wolk, expressed optimism about the market potential, foreseeing annual sales to reach at least $1 billion.

The deal, financed through cash on hand and debt, is expected to close by the middle of this year pending regulatory and shareholder approvals. This acquisition follows J&J’s $16 billion purchase of Abiomed, further strengthening its MedTech division.

Shares of Johnson & Johnson and Shockwave Medical saw a positive uptick following the announcement, reflecting investor confidence in the strategic move towards advancing cardiovascular technologies.