Shockwave Medical Acquisition by Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) and Shockwave Medical, Inc. (Nasdaq: SWAV) have announced a definitive agreement for Johnson & Johnson to acquire all outstanding shares of Shockwave for $335.00 per share in cash, representing an enterprise value of approximately $13.1 billion. The transaction, approved by both companies’ boards of directors, underscores Johnson & Johnson’s commitment to cardiovascular intervention and its move into high-growth markets.

The acquisition expands Johnson & Johnson’s presence in cardiovascular intervention into the coronary artery disease (CAD) and peripheral artery disease (PAD) segments. It follows Johnson & Johnson MedTech’s successful acquisitions of Abiomed and Laminar, enhancing its position in heart recovery and left atrial appendage elimination for patients with non-valvular atrial fibrillation (AFib).

Shockwave is a pioneer in intravascular lithotripsy (IVL) technology for treating calcified CAD and PAD, offering the only commercially available IVL platform. Additionally, Shockwave recently acquired Neovasc Inc., adding the Reducer System for symptom relief of refractory angina to its portfolio.

Joaquin Duato, Chairman and CEO of Johnson & Johnson, highlighted the acquisition’s potential to accelerate impact in cardiovascular intervention, while Tim Schmid, EVP and Worldwide Chairman of Johnson & Johnson MedTech, emphasized Shockwave’s differentiated IVL technology and strong pipeline.

Doug Godshall, President and CEO of Shockwave, expressed confidence in the acquisition’s ability to further solidify IVL as the global standard of care for patients.

The acquisition benefits Johnson & Johnson MedTech by solidifying its leadership in cardiovascular intervention, enhancing its global presence, providing opportunities for future growth, and accelerating sales growth. The transaction is expected to be completed by mid-year 2024, subject to shareholder and regulatory approvals. Upon completion, Shockwave will operate as a business unit within Johnson & Johnson MedTech.

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