Johnson & Johnson (J&J) has agreed to acquire US-based cardiovascular device developer Shockwave Medical in one of the biggest medtech deals in recent years.
Confirming rumours that surfaced earlier this month, J&J will acquire all of Shockwave’s shares for a price of $335 per share, resulting in an enterprise value of around $13.1bn.
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The deal, which is expected to close later this year, will see Shockwave operate as a business unit within J&J MedTech.
In a conference call to investors on 5 April, J&J MedTech’s executive vice-president and worldwide chairman Tim Schmid said: “This acquisition clearly supports our declared strategy to shift our portfolio into higher growth medtech markets.”
“With the addition of Shockwave, we will be the market leader in four of the largest and highest growth medtech markets within cardiovascular intervention.”
Shockwave specialises in coronary artery disease (CAD) and peripheral artery disease (PAD) treatments. The company’s core products are its intravascular lithotripsy (IVL) devices, which are used to remove calcified plaques in arteries.
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By GlobalDataThe developer also has market share in the angina treatment space, after it acquired Neovasc for $100m in January 2023.
The global cardiovascular device market is estimated to grow to nearly $117bn by 2033, up from $68bn in 2023, according to analysis by GlobalData.
GlobalData analyst Joselia Carlos said: “Shockwave’s IVL products immediately dominated the peripheral and coronary angioplasty market upon its entry in 2018 and 2021, respectively. Since then, Shockwave Medical has gained 32% of shares in the peripheral angioplasty market and 58% in the coronary angioplasty market within just four to five years of being in the space.”
“Acquiring Shockwave Medical was a smart and strategic move for J&J to expand its already comprehensive portfolio of medical technologies and treatments.”
J&J has made several big money moves in the cardiovascular space in recent years. The Shockwave deal is only beaten in value in the medtech sector by another of J&J’s deals – the acquisition of heart recovery company Abiomed for $16.6bn in November 2022. The giant also made an upfront payment of $400m to buy atrial fibrillation device maker Laminar in December 2023.
J&J’s chief financial officer Joseph Wolk said: “We view this acquisition as a value creation opportunity that positions us for improved top line and earnings growth over the long term while investing accordingly to capitalise on the value inherent to the Shockwave platform.”
“We anticipate Shockwave becoming J&J MedTechs’s 13th priority platform, with annual sales of at least $1bn.”
