Johnson & Johnson will acquire Shockwave Medical in a deal valued at $13.1 billion, according to a joint statement Friday, the latest acquisition by the pharmaceutical firm over the last two years as it expands on cardiovascular intervention.
The pharmaceutical firm said the acquisition will boost its portfolio for treating two common forms ... [+]
Johnson & Johnson will pay $335 per share in cash for Shockwave, the manufacturer of a catheter-based treatment for patients with build-up in their arteries, which could result in heart disease or heart attacks.
The deal will add to Johnson & Johnson’s portfolio for treating cardiovascular conditions, including treatment for coronary artery disease and peripheral artery disease, the company said.
Johnson & Johnson said it expects financing costs related to the deal to reduce adjusted per-share earnings by 10 cents this year and 17 cents next year.
Both companies said they expect the deal to be closed by mid-2024, pending approval from regulators and shareholders.
400,000. That’s how many patients globally are treated with Shockwave’s catheter-based treatment, according to the joint statement.
Coronary artery disease is the most common form of heart disease, affecting about 20.5 million people in the U.S. over age 20, according to the Centers for Disease Control and Prevention. About 366,000 Americans die from coronary artery disease each year. Peripheral artery disease—which develops after a person’s arteries become clogged with plaque—affects up to 12 million people in the U.S. and is more common in people over age 50.
The deal is Johnson & Johnson’s latest transaction involving cardiovascular intervention over the last two years. Last year, Johnson & Johnson acquired Laminar for $400 million. Laminar manufactures an experimental device that closes part of the heart’s left atrial appendage, an opening in the heart that can be the source of clots entering the bloodstream, often resulting in a stroke. In 2022, Johnson & Johnson bought Abiomed for $16.6 billion. Abiomed has manufactured the world’s smallest heart pumps since 2008, in addition to other medical technology that provides circulatory support, according to CNBC. Abiomed previously invested $15 million in Shockwave in 2018, the Financial Times reported.
Johnson & Johnson Considers Deal For Shockwave Medical (Wall Street Journal)