Johnson & Johnson to acquire Shockwave Medical for $13.1B
Johnson & Johnson has agreed to acquire Shockwave Medical, the California-based company known for its intravascular lithotripsy (IVL) technology, for approximately $13.1 billion. The boards of both companies have already approved the acquisition, which is expected to close in the next few months.
Under the terms of this transaction, Johnson & Johnson will acquire all outstanding shares of Shockwave Medical for a price of $335 per share in cash through a merger of Shockwave Medical and a Johnson & Johnson subsidiary. Once the deal is finalized, Shockwave Medical will operate as a business unit within Johnson & Johnson MedTech.
“Shockwave offers a truly differentiated opportunity to further enhance our leadership position in medtech, expand into additional high-growth segments and ultimately transform the future of cardiovascular treatment,” Tim Schmid, executive vice president and worldwide charmain of Johnson & Johnson MedTech, said in a statement. “Shockwave’s IVL technology for treating coronary artery disease (CAD) and peripheral artery disease (PAD), and its strong pipeline, are in a class of their own. We look forward to bringing Shockwave’s solutions into Johnson & Johnson MedTech and the hands of more physicians around the world.”
IVL image courtesy of Shockwave Medical.
“As part of a larger, more diverse organization, with broad expertise and a core focus on improving patient outcomes, we are confident we will be able to further solidify IVL as the global standard of care for patients,” added Doug Godshall, president and CEO of Shockwave Medical. “I am deeply grateful to our team members and colleagues whose efforts have made today’s milestone possible; their accomplishments and passion have been extraordinary. I could not think of a better partner and home than Johnson & Johnson as the Shockwave team prepares to write its next exciting chapter.”
Godshall is expected to advise Shockwave Medical through the completion of this transaction.
The rumors were true
The cardiology industry has been anticipating this move for quite some time. In March, for example, Johnson & Johnson and Shockwave Medical were rumored to be discussing a potential deal. And Johnson & Johnson, Medtronic and Boston Scientific were all reportedly considering an acquisition of Shockwave Medical in 2023.
A closer look at Shockwave Medical
Shockwave Medical’s IVL technology targets severely calcified plaques in the coronary and peripheral arteries with shockwaves, clearing the way for cardiologists before percutaneous coronary intervention. IVL’s rapid rise among U.S. interventional cardiologists has been one of the industry’s biggest success stories in recent years.
The company has certainly stayed busy in recent years. In 2023 alone, Shockwave Medical acquired Neovasc, a medical device company focused on advanced heart disease; launched its new Shockwave L6 Peripheral IVL catheter designed for large peripheral blood vessels; introduced the Shockwave C2+ Coronary IVL catheter, which is capable of delivering 50% more pulses than the previous offering; and announced improved reimbursement rates for coronary IVL.
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.