Johnson & Johnson to Acquire Shockwave Medical

April 5, 2024—Johnson & Johnson and Shockwave Medical, Inc. announced that they have entered into a definitive agreement under which Johnson & Johnson will acquire 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. The transaction was approved by both companies’ boards of directors.

Shockwave is a provider of intravascular lithotripsy (IVL) technology for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD). In addition to its IVL platform, Shockwave acquired Neovasc Inc., developer of the Reducer system for symptom relief of refractory angina, in April 2023. The Reducer received CE Mark approval and is commercially available in the European Union and the United Kingdom.

With the addition of Shockwave, Johnson & Johnson will expand its medtech cardiovascular portfolio into CAD and PAD treatments, which the company notes are two of the highest-growth, innovation-oriented segments of cardiovascular intervention.

In September 2023, Johnson & Johnson announced that it was uniting both its medtech and pharmaceutical segments under the Johnson & Johnson brand name.

The medical technology segment continues to be named Johnson & Johnson MedTech, which develops innovations at the intersection of biology and technology for surgery, orthopedics, vision, and interventional solutions. The company’s pharmaceutical segment—Janssen, which includes Xarelto (rivaroxaban) for antithrombotic therapy—is named Johnson & Johnson Innovative Medicine. The segment addresses complex diseases to develop potential medicines in the areas of oncology, immunology, neuroscience, cardiovascular, pulmonary hypertension, and retina.

In November 2023, Johnson & Johnson announced the completion of its acquisition of Laminar, Inc., which is focused on left atrial appendage elimination to reduce the risk of stroke in patients with nonvalvular atrial fibrillation. In December 2022, Johnson & Johnson completed the acquisition of Abiomed, maker of Impella heart pumps. These acquisitions complement and build on Johnson & Johnson’s established position in electrophysiology through the Biosense Webster portfolio.

“With our focus on innovative medicine and medtech, Johnson & Johnson has a long history of tackling cardiovascular disease—the leading cause of death globally,” stated Joaquin Duato, Chairman and Chief Executive Officer of Johnson & Johnson, in the press release. “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 Vice President and Worldwide Chairman of Johnson & Johnson MedTech, added, “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, commented in the press release, “Shockwave has transformed the treatment of complex calcified arterial disease through the pioneering development of IVL, 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.”

Godshall continued, “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.”