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J&J nabs Shockwave Medical for $13 billion: Four takeaways

por Gus Iversen, Editor in Chief | April 09, 2024
Business Affairs Cardiology
Johnson & Johnson's acquisition of Shockwave Medical for approximately $13.1 billion is set to reshape the treatment landscape for cardiovascular disease.

Here are five key takeaways from this significant announcement:

Expansion into high-growth cardiovascular segments: Through the acquisition of Shockwave Medical, Johnson & Johnson significantly bolsters its MedTech division, particularly in the high-growth, innovation-driven segments of cardiovascular intervention. Shockwave's pioneering intravascular lithotripsy (IVL) technology offers a novel approach to treating calcified coronary artery disease (CAD) and peripheral artery disease (PAD), addressing a substantial unmet need in the healthcare industry.

Shockwave offers the only commercially available IVL technology and has treated approximately 400,000 patients globally.

Enhanced treatment options for cardiovascular disease: Shockwave's IVL technology represents a groundbreaking approach to cardiovascular care, providing a minimally invasive option for treating calcified arterial lesions. This acquisition will complement Johnson & Johnson MedTech’s leadership positions in heart recovery (Abiomed) and electrophysiology (Biosense Webster) to make it a category leader in four of the largest and highest-growth medtech markets within cardiovascular intervention.

J&J MedTech looks poised for growth: Excluding the Shockwave acquisition, the projected growth rate for Johnson & Johnson’s MedTech business from 2024 to 2030 is estimated at 5.1%, contributing significantly to the company’s overall growth. The Shockwave acquisition may further bolster sales and market penetration.

Future innovation and market expansion: Looking ahead, Shockwave's robust pipeline and ongoing innovation efforts, including the expansion of IVL technology into new therapeutic areas, promise to further enhance Johnson & Johnson’s cardiovascular care offerings. The acquisition opens new avenues for growth and development in underpenetrated markets, positioning both companies at the forefront of cardiovascular healthcare innovation.

Overall, the acquisition highlights Johnson & Johnson’s dedication to advancing cardiovascular health. It underscores the company's strategic vision for growth and innovation in the healthcare sector, with a clear focus on improving patient care and outcomes in cardiovascular disease.

“With our focus on Innovative Medicine and MedTech, Johnson & Johnson has a long history of tackling cardiovascular disease — the leading cause of death globally," said Joaquin Duato, chairman and CEO of Johnson & Johnson, in a statement. "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.”

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