Johnson & Johnson has agreed to acquire Shockwave Medical for $13.1 billion, expanding its cardiovascular portfolio into coronary artery disease and peripheral artery disease segments. The deal, expected to close in mid-2024, will be funded through cash on hand and debt. Shockwave's intravascular lithotripsy devices complement J&J's existing heart pumps, and the company plans to invest in growth within the under-penetrated segments. Despite potential regulatory challenges, J&J CEO Joaquin Duato expressed confidence in the deal's timing, while analysts believe the $13.1 billion agreement represents fair value for Shockwave.
Johnson & Johnson has agreed to acquire Shockwave Medical for $12.5 billion, expanding its portfolio of medical devices for treating heart diseases. The acquisition provides J&J access to Shockwave's device that uses shockwaves to break down calcified plaque in heart vessels, with the total addressable market for similar therapies estimated at about $10 billion. This move follows J&J's previous acquisitions to strengthen its cardiac health division, and the company expects to finance the deal through a combination of cash on hand and debt.
Johnson & Johnson has acquired Shockwave Medical for $13.1 billion, aiming to bolster its presence in higher-growth markets and expand its expertise in cardiovascular intervention. Shockwave Medical specializes in intravascular lithotripsy, a technology that helps treat calcifications in the arteries, and the deal is expected to close in mid-2024. The acquisition is projected to be slightly dilutive to J&J's adjusted earnings for this year and the next, and analysts believe the offer fairly values Shockwave, with no anticipated antitrust issues due to a lack of product overlap.
Johnson & Johnson has agreed to acquire Shockwave Medical for $12.5 billion, expanding its portfolio of medical devices for treating heart diseases. The deal gives J&J access to Shockwave's catheter-based treatment using shockwaves to break down calcified plaque in heart vessels, complementing its focus on building its cardiac health business. This acquisition follows J&J's previous purchases in the heart device sector and is expected to close by mid-2024, financed through a combination of cash and debt.
The 2024 J.P. Morgan Healthcare Conference featured updates from industry leaders including Medtronic, Abbott, Shockwave Medical, Dexcom, and Johnson & Johnson MedTech. Medtronic focused on restoring earnings power and highlighted growth opportunities in cardiac ablation, diabetes, and structural heart, while also announcing the creation of the Medtronic AI Center of Excellence. Abbott touted the success of its FreeStyle Libre continuous glucose monitoring device and its plans for further growth, while Shockwave Medical emphasized product launches and global expansion efforts. Dexcom unveiled its new Stelo sensor designed for people with type 2 diabetes, and Johnson & Johnson MedTech highlighted its growth through M&A activities and recent developments in surgical robotics and pulsed field ablation.
The potential deal between Boston Scientific and Shockwave Medical reportedly fell apart due to disagreement on price, causing Shockwave's stock to drop by 6.3%. The deal could have bolstered Boston Scientific's cardiovascular portfolio with Shockwave's intravascular lithotripsy technology. Shockwave is expected to report a 103% increase in earnings and a 57% increase in sales for Q1. Analysts predict Shockwave's earnings to increase by 35% and sales to surge by 37% for the year.
