Friday, Johnson & Johnson JNJ agreed to acquire Shockwave Medical Inc SWAV for $335.00 per share in cash, corresponding to an enterprise value of approximately $13.1 billion, including cash acquired.
The acquisition comes a little more than a year, when in 2022, Johnson & Johnson acquired Abiomed for an upfront payment of $380.00 per share in cash, corresponding to an enterprise value of approximately $16.6 billion.
In November 2023, Johnson & Johnson MedTech acquired Laminar Inc., a privately-held medical device company focused on eliminating the left atrial appendage in patients with non-valvular atrial fibrillation, for $400 million.
The acquisition of Shockwave Medical further extends Johnson & Johnson MedTech’s position in cardiovascular intervention and accelerates its shift into higher-growth markets.
Related Content: Johnson & Johnson Strong Strategic Fit For Shockwave Medical, But Medtronic, Boston Scientific Could Be Other Bidder, Says Analyst.
With the addition of Shockwave, Johnson & Johnson will expand its MedTech cardiovascular portfolio into two of the highest-growth segments of cardiovascular intervention – coronary artery disease (CAD) and peripheral artery disease (PAD).
Shockwave offers intravascular lithotripsy (IVL) technology for calcified CAD and PAD.
IVL is a minimally invasive, catheter-based treatment for calcified arterial lesions, which can reduce blood flow and cause pain or heart attack.
IVL helps restore blood flow by cracking calcium lesions using sonic pressure waves and is used in both CAD and PAD, often in combination with stenting.
Shockwave offers the only commercially available IVL technology and has treated approximately 400,000 patients globally.
Shockwave recently acquired Neovasc Inc., a company that has developed the Reducer System, a product focused on symptom relief of refractory angina. It is currently undergoing clinical studies in the U.S. and is CE marked in the European Union and the U.K.
Shockwave is ultimately expected to become Johnson & Johnson MedTech’s thirteenth priority platform, as defined by annual sales of at least $1 billion.
Johnson & Johnson expects the transaction to be operationally accretive upon closing, but considering the impact of financing costs, it is expected to dilute adjusted EPS by approximately $0.10 in 2024 and approximately $0.17 in 2025.
The deal is expected to close by mid-year 2024.
Price Action: JNJ shares are up 0.10% at $152.65, and SWAV shares are up 1.62% at $325.40 during the premarket session on the last check Friday.
Image By Sundry Photography Via Shutterstock
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