Johnson & Johnson vs. Boston Scientific: The IVL Arena Emerges as the Next Blockbuster Frontier

Jun 04, 2024 19:05 CST Updated 19:05

Johnson & Johnson

Medical Device R&D and Manufacturer

Shockwave Medical

Cardiovascular Disease Treatment Device Developer

▲ Source of the article:SiYu MedTech

▲Please indicate the above source at the beginning of the article when reprinting.

U.S. time May 31, 2024,Johnson & Johnson (NYSE: JNJ) announced the acquisition of$13.1 billion (approximately RMB 94.864 billion) completed the acquisition ofShockwave MedicalThe acquisition.

Event Overview

In April not long ago, Johnson & Johnson confirmed the plan to acquire Shockwave Medical, a manufacturer of intravascular lithotripsy (IVL) technology. It was previously reported that Johnson & Johnson had intended to acquire the company last year.

According to the acquisition agreement, Shockwave Medical will now operate as a business unit of Johnson & Johnson Medical Technologies, and subsequently, Shockwave's common stock will cease trading on Nasdaq.

Before this acquisition, Johnson & Johnson had already carried out a series of acquisitions in the cardiovascular field. These included the $16.6 billion acquisition of Abiomed in 2022 and the $400 million acquisition of Laminar in November last year. The addition of Shockwave Medical's commercially available intravascular lithotripsy platform,It will be a complement to Johnson & Johnson's Abiomed cardiac recovery and Biosense Webster electrophysiology technologies.

ShockWave Medical, Inc. was founded in the United States in 2009 and went public on NASDAQ in April 2019. It is the world's first company to launch an intravascular lithotripsy balloon.

The Shockwave balloon has been approved for marketing by the U.S. FDA, received approval in Europe and some Asian countries, and was approved by the NMPA for marketing in 2022.

Currently, the Chinese shock wave balloon market is dominated by Shockwave Medical, whose products were the first to receive regulatory approval. Through collaboration with a local medical product company, Jian Shi Medical, the supply capacity for the domestic market has gradually increased.

The latest report shows,In 2023, the company's annual revenue reached 490 million US dollars, approximately 3.5 billion Chinese yuan, and it climbed 11 positions to rank 88th in the annual Top 100 Medical Technology Companies list.

Shockwave Medical aims to establish a new standard for medical device treatment of atherosclerotic cardiovascular disease through its differentiated and proprietary localized delivery of acoustic pressure waves for the treatment of calcified plaque.That is, intravascular lithotripsy（Intravascular Lithotripsy , IVL）。

The company provides the M5 catheter for treating above-the-knee peripheral artery disease, the C2 catheter for treating coronary artery disease, and the S4 catheter for treating below-the-knee peripheral artery disease.

Among them, the catheter for treating peripheral arterial calcification lesions obtained European CE and U.S. FDA approval as early as 2018; the catheter for treating coronary artery calcification lesions received European CE and U.S. FDA approval in 2018 and 2021, respectively.

In 2021, China's Genesis Medtech and Shockwave Medical established a joint venture in China,Aimed to introduce Shockwave Medical's products into China, and successfully obtained the approval from the National Medical Products Administration (NMPA) for marketing in May 2022. Its balloon for valve calcification using shockwave technology is also in the preclinical research stage.

Currently, Shockwave Medical has established direct sales points in the United States, Germany, Austria, and Switzerland, and has built an extensive distributor network across more than 50 countries in North America, South America, Europe, the Middle East, Asia, Africa, and Australia.

Once contested by multiple giants

In fact, Shockwave Medical has long been a target for acquisition by many leading enterprises. It focuses on developing products for the treatment of calcified cardiovascular diseases and is the world’s first company to launch a shockwave balloon catheter.

Earlier last year, media reports claimed that,Johnson & Johnson（Johnson & Johnson）、Medtronic(Medtronic) andBoston Scientific(Boston Scientific) are potential bidders.

For example, in April last year, Boston Scientific showed a strong interest in acquiring Shockwave Medical, hoping to strengthen its cardiovascular product portfolio by acquiring this company that focuses on vascular calcification.

However, just a few weeks ago, there were reports that Johnson & Johnson's intention to acquire was quite strong. Now, this rumor has finally been confirmed.But even with so many medical giants inSShockwave Medical extended an olive branch, but this company has not stopped its own path of external expansion.

In April 2023, Shockwave Medical announced the acquisition of Neovasc., with a transaction amount reaching 147 million US dollars. The latter is a professional medical device company, whose products include mitral valve and interventional devices for the treatment of angina pectoris. Neovasc has developed a decompression system for refractory angina - the Neovasc Reducer stent.

▲Neovasc'sNeovasc Reducer Stent

This YearEarlier,Shockwave MedicalThe CEO outlined a growth vision centered on new product launches, R&D, global expansion, and more.

On April 11, 2024, Shockwave Medical announced the opening of a new Intravascular Lithotripsy (IVL) technology production facility in Costa Rica, marking the company'sThe first factory outside the United States.

According to local news media La Republica, the company's total investment in Costa Rica will reach 40 million US dollars by 2028.Plan to hire 1,200 employees at the factory in the next three years.

It is reported that Johnson & Johnson plans to appoint Michael Bodner, currently serving as the Global Head of Cardiac Recovery at Abiomed, to lead this business.hockwave MedicalPresident and COO Isaac Zacharias becomesShockwave MedicalGlobal President, and toMichael BodnerReport.

Executive Vice President and Chairman of Johnson & Johnson Medical TechnologyTim Schmid stated:Shockwave Medical"Truly unique opportunity." The company's IVL technology for treating coronary artery disease (CAD) and peripheral artery disease (PAD), along with its robust product pipeline, is one of a kind.He believes that this deal can strengthen the company's position in the medical technology field, especiallyCardiovascular InterventionPosition in the field.

Overview of the Intravascular Shockwave Market

According to Frost & Sullivan's forecast,By 2030, the number of people with coronary artery disease in China will reach 32 million.. And from the patient data of coronary intervention surgery (PCI) in China in 2021, it can be seen that over 30% of patients have already developed calcified lesions. CurrentlyThe management of coronary calcification has become a rigid demand in clinical PCI procedures.。In recent years, multiple relevant guidelines and consensus statements have included intravascular lithotripsy with shock waves as a recommended treatment for coronary artery calcification.

▲Core Market and Potential Market for Shockwave Balloon Therapy

The potential IVL market for coronary artery disease in China will increase from 224.9 million yuan in 2023 to 918.4 million yuan in 2025, with a CAGR of 102.1%.Has huge market development space.

Since its invention in 2018, Shockwave Medical has successively received FDA approval for peripheral artery and coronary artery calcium indications in the United States. With its safe and effective clinical outcomes, as well as easy-to-use intraoperative procedures, it is considered by the industry to be a significant leap forward in the treatment of calcified lesions. Shockwave Medical has experienced rapid revenue growth, with $237 million in income in 2021, representing a year-over-year increase of 250%, and growing nearly tenfold since its IPO. In April 2023, foreign media reported that Boston Scientific Corporation had been exploring the acquisition of cardiovascular device manufacturer Shockwave Medical, Inc., a move rumored to counter Abbott’s market strategy.

With international medical giants monopolizing the market, the domestic market in China has also started to cluster its layout.According to incomplete statistics, nearly 10 medical device companies in China are currently researching, conducting clinical trials, or registering for coronary intravascular lithotripsy (IVL).

August 2023,Huihe MedicalC-Wave® Intravascular Shock Wave System, under the company's brand, has received NMPA approval for marketing. It has become the first domestically produced shock wave system to be marketed in China and the second IVL product globally to be marketed. According to the NMPA registration data, its indication is for peripheral blood vessels.

October 2023,Shockwave MedicalSelf-developed Coronary Intravascular Shockwave Treatment System Officially Approved by National Medical Products Administration (NMPA) for Market Launch, Becoming the First Approved Coronary Shockwave Treatment System Produced in China.

January 2024,Lepu MedicalThe self-developed coronary shockwave catheter system has received approval from the National Medical Products Administration (NMPA) for market release, becoming the second domestically produced coronary shockwave balloon catheter system to be launched in China and the third coronary IVL product globally.

March 2024,Spectrum MedicalChina's independently developed coronary intravascular shockwave treatment system has officially received approval from the National Medical Products Administration (NMPA) for market launch. This is currently the only domestically produced, self-developed coronary intravascular shockwave treatment product to have obtained an invention patent authorization in China, successfully overcoming technical bottlenecks faced by similar foreign products. It also makes the company the third local enterprise to receive approval in the coronary intravascular shockwave field.

May 2024,Blue Sail MedicalAnnouncement: Shanghai Lanfan Boyuan Medical Technology Co., Ltd., a subsidiary of the Cardio-Cerebral Vascular Business Unit, has independently developed a Class III medical device product, the disposable coronary intravascular shockwave catheter — Soni Cracker™-CL (NMPA approval No. 20243030988), which has officially received NMPA medical device registration certification after review and approval by the National Medical Products Administration (NMPA) of China. The Soni Cracker™-CL shockwave balloon is the fourth domestically produced product of its kind to be approved for marketing by the National Medical Products Administration in China.

In addition,MicroPort Medical, Peijia MedicalShockwave treatment products are also proceeding steadily.

Note:The above content is for reference only and does not constitute investment advice. Due to the manual collection of information, there may be some discrepancies. If there are any issues, please contact us in a timely manner. Thank you for your corrections. Content sourced from publicly available online materials.

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