Johnson and Johnson announced Friday that it has reached a deal to acquire heart device maker Shockwave Medical for about $13.1 billion. The acquisition expands the healthcare giant’s portfolio of medical devices used to treat heart diseases.
“Cardiovascular intervention is one of the fastest-growing global medtech markets, with significant unmet patient need,” Johnson & Johnson said in a statement.
Johnson & Johnson’s last major acquisition was also in heart devices — it added Abiomed to the fold for for $16.6 billion in 2022.
The Santa Clara, California-based Shockwave Medical makes a medical device that treats calcified coronary artery disease and peripheral artery disease. The device’s intravascular lithotripsy technology uses shockwaves to break down calcium deposits in arteries, which if untreated can reduce blood flow and cause a heart attack.
In 2023, Shockwave’s revenue grew 49% to $730 million, according to its most recent quarterly earnings report. The company projects that its revenue in 2024 will rise another 25% to between $910 million and $930 million.
Under the terms of the agreement, Johnson & Johnson will buy all outstanding shares of Shockwave for $335.00, a 5% premium from the company’s closing price on Thursday. The deal is expected to close by the middle of this year.
Pharma giants are scooping up treatments for heart disease
Deals like these are part of a larger trend in the industry in which pharma giants are expanding their heart treatment businesses.
Ozempic maker Novo Nordisk announced in March that it was acquiring Cardior Pharmaceuticals to the tune of €1.03 billion ($1.1 billion). The Germany-based drug maker, develops therapies that target RNA to prevent and treat heart diseases. Novo Nordisk said the deal is an important step for the company to establish its presence in the sector.
And in February, Bayer purchased the European marketing rights of BridgeBio Pharma’s new heart disease drug for $310 million.
Cardiovascular diseases are the leading cause of death worldwide, accounting for almost 20 million fatalities a year, according to the World Health Organization.