Johnson & Johnson and Shockwave Medical began a deal in which J&J will acquire all outstanding Shockwave Medical shares for $335 per share in cash, equaling an enterprise value of about $13.1 billion including cash acquired.
 
Acquiring Shockwave further extended J&J MedTech’s position in cardiovascular intervention. J&J will grow its cardiovascular medtech portfolio into coronary artery disease (CAD) and peripheral artery disease (PAD).
 
This transaction follows the company’s acquisitions of Abiomed and more recently Laminar, an innovator in left atrial appendage elimination for patients with non-valvular atrial fibrillation (AFib). These deals complement and build on J&J’s established position in electrophysiology through its Biosense Webster portfolio.
 
Shockwave is the first-to-market provider of intravascular lithotripsy (IVL) tech to treat calcified CAD and PAD. IVL is a catheter-based treatment for calcified arterial lesions, which may reduce blood flow and cause heart attack or pain. IVL cracks calcium lesions with sonic pressure waves and is often used in combination with stenting for CAD and PAD.
 
IVL is the only technology that can treat both intimal and medial calcification. Shockwave’s IVL and Abiomed’s Impella heart pump also have clinical compatibility—IVL is used in about 30% of high-risk PCI cases that also use Impella today, according to J&J. IVL also has potential use in indications like carotid artery disease and structural heart disease.
 
Shockwave also recently acquired Neovasc, a company that developed the Reducer system for symptom relief of refractory angina. It’s currently undergoing clinical studies in the U.S. and is CE marked in the EU and UK.
 
J&J said Shockwave is expected to become J&J MedTech’s thirteenth priority platform, defined by annual sales of at least $1 billion. The company expects the transaction to be accretive to operating margin for both J&J and J&J MedTech.
 
After the deal’s completion, Shockwave will become a business unit within J&J MedTech, and financials will be reported in the company’s Cardiovascular portfolio, previously referred to as Interventional Solutions. The company expects the transaction to be completed by mid-year 2024.
 
In addition to current responsibilities for Abiomed as Global Head of Heart Recovery, Michael Bodner will assume responsibility for the business upon close. Isaac Zacharias, who spent six years with Shockwave, most recently serving as president and chief commercial officer, will transition to become worldwide president of Shockwave, reporting to Michael Bodner. Doug Godshall, Shockwave’s president and CEO, will advise through the transition.
 
Joaquin Duato, chairman and CEO of Johnson & Johnson, said, “With our focus on Innovative Medicine and MedTech, Johnson & Johnson has a long history of tackling cardiovascular disease—the leading cause of death globally. 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.”
 
Tim Schmid, executive VP and Worldwide Chairman of Johnson & Johnson MedTech, said, “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. 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.”