Medical Devices DECODED
Previous edition: 08 Apr 2024
Share article
Get the full version straight to your inbox.
Exclusive access to our best-in-class data & intelligence
Subscribe now
J&J seeks cardiovascular market growth with $13.1bn Shockwave deal
The deal expands J&J's footprint in coronary artery disease and peripheral artery disease treatment devices.
Johnson & Johnson (J&J) has agreed to acquire US-based cardiovascular device developer Shockwave Medical in one of the biggest medtech deals in recent years.
Confirming rumours that surfaced earlier this month, J&J will acquire all of Shockwave’s shares for a price of $335 per share, resulting in an enterprise value of around $13.1bn.
The deal, which is expected to close later this year, will see Shockwave operate as a business unit within J&J MedTech.
In a conference call to investors on 5 April, J&J MedTech’s executive vice-president and worldwide chairman Tim Schmid said: “This acquisition clearly supports our declared strategy to shift our portfolio into higher growth medtech markets.”
“With the addition of Shockwave, we will be the market leader in four of the largest and highest growth medtech markets within cardiovascular intervention.”
Shockwave specialises in coronary artery disease (CAD) and peripheral artery disease (PAD) treatments. The company’s core products are its intravascular lithotripsy (IVL) devices, which are used to remove calcified plaques in arteries.
The developer also has market share in the angina treatment space, after it acquired Neovasc for $100m in January 2023.
The global cardiovascular device market is estimated to grow to nearly $117bn by 2033, up from $68bn in 2023, according to analysis by GlobalData.
GlobalData analyst Joselia Carlos said: "Shockwave's IVL products immediately dominated the peripheral and coronary angioplasty market upon its entry in 2018 and 2021, respectively. Since then, Shockwave Medical has gained 32% of shares in the peripheral angioplasty market and 58% in the coronary angioplasty market within just four to five years of being in the space."
"Acquiring Shockwave Medical was a smart and strategic move for J&J to expand its already comprehensive portfolio of medical technologies and treatments."
J&J has made several big money moves in the cardiovascular space in recent years. The Shockwave deal is only beaten in value in the medtech sector by another of J&J’s deals – the acquisition of heart recovery company Abiomed for $16.6bn in November 2022. The giant also made an upfront payment of $400m to buy atrial fibrillation device maker Laminar in December 2023.
J&J’s chief financial officer Joseph Wolk said: “We view this acquisition as a value creation opportunity that positions us for improved top line and earnings growth over the long term while investing accordingly to capitalise on the value inherent to the Shockwave platform."
“We anticipate Shockwave becoming J&J MedTechs’s 13th priority platform, with annual sales of at least $1bn.”
Latest news
Omron announces acquisition of Dutch Luscii Healthtech
The acquisition will give the Japanese medtech firm a greater foothold in the European market taking over an app already present in 70% of Dutch hospitals.
Oasis introduces punctal plug for dry eye treatment
The SOFT PLUG Extended Duration 180-T Tapered Plug features a 0.25mm tapered end.
LMI and SOFIE to launch Neuraceq PET imaging agent in Cleveland, US
The Neuraceq imaging agent for beta-amyloid PET scans will be distributed from SOFIE's site in Cleveland, Ohio.
BD launches new spectral cell sorters for cell biology and immunology
The BD FACSDiscover S8 Cell Sorters are designed to offer real-time imaging and spectral flow cytometry capabilities.
“New frontier” for xenotransplantation as pig kidney patient leaves hospital
Xenotransplantation is said to be "on the brink of a monumental breakthrough" following the successful operation.
Clarius and ThinkSono launch AI-guided ultrasound system in Europe
The companies are also preparing for a FDA submission for the AI-guided ultrasound system.
Pfizer's Velsipity UK approval will raise competition in ulcerative colitis market, says GlobalData
As Pfizer further expands its portfolio in the treatment of UC, the competition in the market increases.
In our previous edition
Medical Devices Decoded
Biolinq raises $58m for glucose microsensor pivotal trial
05 Apr 2024
Medical Devices Decoded
Inspira Technologies launches programme examining artificial womb
04 Apr 2024
Medical Devices Decoded
Abbott's bedside concussion blood test scores FDA clearance
03 Apr 2024
Newsletters in other sectors
Aerospace, Defence & Security
Banking & Payments
Travel and Tourism
Search companies, themes, reports, as well as actionable data & insights spanning 22 global industries
Access more premium companies when you subscribe to Explorer