Press Release

Johnson & Johnson to Buy Shares of Shockwave Medical Inc.

Johnson & Johnson has entered into a definitive agreement with Shockwave Medical to buy shares of Shockwave Medical.

Takeaway Points

  • Johnson & Johnson announced on Friday that it has entered into a definitive agreement with Shockwave Medical, Inc.
  • Based on the agreement, Johnson & Johnson will buy all outstanding shares of Shockwave for $335.00 per share in cash.
  • The transaction follows Johnson & Johnson MedTech’s successful acquisitions of Abiomed, a leader in heart recovery, and more recently, Laminar, an innovator in left atrial appendage elimination for patients with non-valvular atrial fibrillation (AFib).

What did J&J Buy?

Johnson & Johnson announced in a press release on Friday that it has entered into a definitive agreement with Shockwave Medical, Inc. Based on the agreement, Johnson & Johnson will buy all outstanding shares of Shockwave for $335.00 per share in cash, corresponding to an enterprise value of approximately $13.1 billion, including cash acquired. 

According to the report, the transaction was approved by the boards of directors of both companies. It also explains that the buying of shockwave will increase Johnson & Johnson MedTech’s position in cardiovascular intervention and accelerate its shift into higher-growth markets. With the addition of Shockwave, Johnson & Johnson will expand its MedTech cardiovascular portfolio into two of the highest-growth, innovation-oriented segments of cardiovascular intervention – coronary artery disease (CAD) and peripheral artery disease (PAD). The transaction follows Johnson & Johnson MedTech’s successful acquisitions of Abiomed, a leader in heart recovery, and more recently, Laminar, an innovator in left atrial appendage elimination for patients with non-valvular atrial fibrillation (AFib). 

Joaquin Duato, Chairman and Chief Executive Officer of Johnson & Johnson, said that by buying Shockwave and its leading IVL technology, it provides an opportunity to accelerate their impact in cardiovascular intervention.

“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.” said Joaquin.

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

Doug Godshall, President and CEO of Shockwave, said that Shockwave has changed the treatment of complex calcified arterial disease through the pioneering development of intravascular lithotripsy, and he couldn’t think of a better partner than Johnson & Johnson.

“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. 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.”

Transaction Details 

J&J said that at the completion of the transaction, Shockwave will now operate as a business unit within Johnson & Johnson MedTech, and everything about finance will be reported within Johnson & Johnson MedTech’s cardiovascular portfolio. Michael Bodner will assume responsibility for the business upon close. Isaac Zacharias, serving as President and Chief Commercial Officer of Shockwave, will transition to become Worldwide President of Shockwave, reporting to Michael Bodner. Doug Godshall, Shockwave’s President and Chief Executive Officer, will advise through the transition.

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