On May 31, Johnson & Johnson announced it has completed its acquisition of Shockwave Medical. Shockwave is now part of Johnson & Johnson and will operate as a business unit within Johnson & Johnson MedTech.
In April, we reported that Johnson & Johnson had reached an agreement with Shockwave to acquire all outstanding shares of Shockwave in a deal with an enterprise value of approximately $13.1 billion.
Shockwave represents a significant acquisition for Johnson & Johnson in the cardiovascular intervention space. Shockwave is “a leading, first-to-market provider of innovative intravascular lithotripsy (IVL) technology for the treatment of calcified CAD [coronary artery disease] and PAD [peripheral artery disease]. IVL is a minimally invasive, catheter-based treatment for calcified arterial lesions, which can reduce blood flow and cause pain or heart attack. IVL helps restore blood flow by cracking calcium lesions using sonic pressure waves and is used in both CAD and PAD, often in combination with stenting. Shockwave offers the only commercially available IVL technology and has safely, simply, and effectively treated approximately 400,000 patients globally.”
Shockwave is ultimately expected to become Johnson & Johnson MedTech’s 13th priority platform, as defined by annual sales of at least $1 billion. The transaction is expected to accelerate revenue growth for both Johnson & Johnson and Johnson & Johnson MedTech. Johnson & Johnson expects the transaction to be accretive to operating margin, but considering the impact of financing costs, is expected to dilute adjusted earnings per share by approximately $0.10 in 2024 and approximately $0.17 in 2025.
In connection with the completion of the transaction, Shockwave’s common stock has now ceased trading on NASDAQ.
