Johnson & Johnson Signs Deal To Upgrade MedTech  

In a statement made on 6 April 2024, American pharmaceutical giant Johnson & Johnson announced that they had signed a deal to acquire Shockwave Medicals to upgrade and bring advancements in heart care-related MedTech. Shockwave Medicals is a Medtech company that specializes in technology that helps open up clogged arteries. J&J also stated that the company will be paying $335 in cash for each share of Shockwave Medicals, which amounts to around $13 billion. Moreover, the deal has been approved by the board of directors of both companies. 

Founded in 2009, Shockwave Medicals is a MedTech company focusing on intravascular lithotripsy technology. This technology uses sonic pressure waves to crack calcium lesions in arteries and maintain proper blood flow. The procedure closely resembles the technique used to break down kidney stones. Only here are the sound emitters placed inside the angioplasty catheters to reach the area where there is a calcium buildup. Moreover, this technology is also used to treat peripheral artery and coronary artery disease. This is a relatively new technology, and Shockwave has leveraged this technology to earn a lot of revenue. The company’s revenue increased by around 49% last year to $730 million. 

J&J’s CFO, Joseph Volk, told the analysts on 5th April 2024 that the technology is still in the early phase. The company plans to expand the technology even further into the US and global markets. He also stated that the company expects annual sales to reach $1 billion this year. 

This acquisition comes more than a year after J&J acquired another cardiovascular technology company, Abiomed, for a whopping $16 billion. The company made these acquisitions with a goal to bolster its MedTech department. The company is still awaiting approval from the regulatory authorities and expects to finalize the acquisition by July 2024. Since the time J&J announced the deal, the share of Shockwave has soared more than 1.5% or $5. 

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