Johnson & Johnson Set to Acquire Shockwave Medical, Aiming to Strengthen Company’s MedTech Division

Image Credit: Adobe Stock Images/Mohammad

Johnson & Johnson (J&J) announced that it has agreed to terms on acquiring Shockwave Medical, an intravascular lithotripsy (IVL) technology company focused on coronary artery disease (CAD) and peripheral artery disease. According to J&J, the deal is a part of its strategy to enhance the profile of its MedTech division, with an emphasis on the area of cardiovascular intervention. Shockwave Medical’s IVL technology is described as a minimally invasive treatment for calcified artery diseases that can also lead to reduced blood flow, pain, or heart attacks. Under terms of the deal, J&J is expected to acquire all outstanding shares of the company for $335.00 per share in cash.¹

“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. Shockwave’s IVL technology for treating CAD and 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,” said Tim Schmid, EVP, worldwide chairman, J&J MedTech, in a press release.

This acquisition follows J&J’s deal to acquire Laminar, medical device company focused on eliminating the left atrial appendage in patients with non-valvular atrial fibrillation in 2023; and Abiomed, a company focused on breakthrough heart, lung, and kidney support technologies. As a result of these acquisitions, J&J is anticipating a massive boost in four high-growth cardiovascular segments.^1-3

“Shockwave has transformed the treatment of complex calcified arterial disease through the pioneering development of intravascular lithotripsy, and it is our mission to make this remarkable technology available to patients worldwide,” said Doug Godshall, president, CEO, Shockwave, in the press release. “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. 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.”

According to the Centers for Disease Control (CDC), CAD is the most common form of heart disease, with 375,476 deaths reported in 2021. Additionally, 5% of adults over 20 years of age have struggled with CAD.⁴

“Heart disease is the leading cause of death for people of most racial and ethnic groups in the United States, including African American, American Indian, Alaska Native, Hispanic, and white men,” reports the CDC. “For women from the Pacific Islands and Asian American, American Indian, Alaska Native, and Hispanic women, heart disease is second only to cancer.”

References

1. Johnson & Johnson to Acquire Shockwave Medical. Johnson & Johnson. April 5, 2024. Accessed April 5, 2024. https://www.jnj.com/media-center/press-releases/johnson-johnson-to-acquire-shockwave-medical

2. Johnson & Johnson MedTech Acquires Laminar, Inc. Johnson & Johnson. November 30, 2023. Accessed April 5, 2024. https://www.jnj.com/media-center/press-releases/johnson-johnson-medtech-acquires-laminar-inc

3. Johnson & Johnson to Acquire Abiomed. Johnson & Johnson. November 1, 2022. Accessed April 5, 2024. https://www.jnj.com/media-center/press-releases/johnson-johnson-to-acquire-abiomed

4. Heart Disease Facts. CDC. Accessed April 5, 2024. https://www.cdc.gov/heartdisease/facts.htm#:~:text=due%20to%20death.-,Coronary%20Artery%20Disease,killing%20375%2C476%20people%20in%202021.&text=About%201%20in%2020%20adults,have%20CAD%20(about%205%25).&text=In%202021%2C%20about%202%20in,less%20than%2065%20years%20old.