Johnson & Johnson Acquires Cardiovascular Medical Device Company Shockwave Medical

Johnson & Johnson (New Brunswick, N.J., USA) and Shockwave Medical (Santa Clara, CA, USA) have entered into a definitive agreement under which Johnson & Johnson will acquire all of Shockwave’s outstanding shares for USD 335 per share in cash, translating into an enterprise value of about USD 13.1 billion including cash acquired.

Shockwave is a leading, first-to-market provider of innovative intravascular lithotripsy (IVL) technology for treating calcified coronary artery disease (CAD) and peripheral artery disease (PAD) - two of the highest-growth, innovation-oriented segments of cardiovascular intervention. IVL is a minimally invasive, catheter-based treatment for calcified arterial lesions, which can cause reduced blood flow and pain or heart attack. IVL aids in restoring blood flow by using sonic pressure waves to crack calcium lesions and is used in both CAD and PAD, mostly in combination with stenting. Shockwave offers the only commercially available IVL technology and has been used to safely, simply, and effectively treat about 400,000 patients across the world. Cardiovascular intervention is among the fastest-growing medtech markets in the world and has significant unmet patient need. The Shockwave acquisition further extends Johnson & Johnson MedTech’s position in cardiovascular intervention and accelerates its shift into higher-growth markets.

Following the addition of Shockwave, Johnson & Johnson will expand its MedTech cardiovascular portfolio into CAD and PAD. The transaction comes close on the heels of Johnson & Johnson MedTech’s acquisitions of Abiomed, a leader in heart recovery, followed by Laminar, an innovator in left atrial appendage elimination for patients with non-valvular atrial fibrillation (AFib). These acquisitions complement and build on Johnson & Johnson’s established global leadership position in electrophysiology through the Biosense Webster portfolio. Following the closure of the transaction, Johnson & Johnson MedTech will become a category leader in four high-growth cardiovascular segments.

“With our focus on Innovative Medicine and MedTech, Johnson & Johnson has a long history of tackling cardiovascular disease – the leading cause of death globally,” said Joaquin Duato, Chairman and Chief Executive Officer of Johnson & Johnson. “The acquisition of Shockwave and its leading IVL technology provides a unique opportunity to accelerate our impact in cardiovascular intervention and drive greater value for patients, shareholders and health systems.”

“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,” added Tim Schmid, Executive Vice President and Worldwide Chairman of Johnson & Johnson MedTech. “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.”

“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 and CEO of Shockwave. “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.”