Johnson & Johnson to Acquire Shockwave Medical for $12.5 Billion to Expand Cardiovascular Portfolio

　　【Pharmaceutical Network Enterprise News] On April 5, 2023, Johnson & Johnson announced the acquisition of medical device company Shockwave for $12.5 billion to further expand its medical device product portfolio in the cardiovascular field. The transaction is expected to be completed by mid-2024.
 

As early as the beginning of 2023, Johnson & Johnson stated that the company plans to focus on transactions that add value to its cardiovascular product portfolio. In the future, it is also possible to see more investment by the company in cardiovascular medical device equipment.
 

Data shows that Shockwave's intravascular lithotripsy (IVL) balloon device is gaining global popularity.
 

It is reported that the shockwave balloon targets complex lesions caused by coronary artery calcification. The deposition of calcium in the vascular wall leads to hardening of the vessel, making it difficult for stents to pass through normally, thereby increasing the difficulty of percutaneous coronary intervention (PCI) surgery. The treatment principle of the shockwave device is to deliver pulsed sound pressure waves to the calcified area via a balloon catheter, "loosening" the calcified plaque before stent implantation.
 

In China, Shockwave's "Intravascular Lithotripsy" calcification treatment technology was approved for marketing in May 2022 for use in coronary intervention treatments. It is represented by the local medical company Jianshi Medical and plans to localize the production of this product. It is reported that Shockwave has increased its layout in grassroots hospitals in China since the second half of 2023, with hundreds of hospitals currently adopting it, including grassroots hospitals.
 

With its shock wave device products, Shockwave's revenue reached $700 million in 2023. Globally, as of the end of 2023, Shockwave has been applied to more than 70,000 coronary artery disease patients in Europe and the United States, and the market still has significant room for penetration. Shockwave estimates the global intravascular shock wave market size to be approximately $8.5 billion.
 

However, the competition in China's shock wave balloon product market is becoming increasingly intense. Currently, there are more than 40 companies in China engaged in the research and development of shock wave balloon products, which may pose challenges to Shockwave's continued profitability in the future.
 

Not long ago, a coronary intravascular shock wave treatment system developed by Spectrum Medical announced that it had received marketing approval from the National Medical Products Administration (NMPA). Earlier, products from local companies such as Saihe Medical and Lepu Medical were also approved for marketing.
 

Among them, Saihe Medical's IVL system is the first domestically approved coronary shock wave treatment system made in China. The product consists of the LiqMagic®C14 single-use coronary intravascular shock wave catheter and the ISL100 Pro intravascular shock wave treatment device, utilizing innovative vascular calcified plaque cracking technology to improve the compliance of coronary arteries.
 

Lepu Medical's self-developed coronary shockwave catheter system received approval from the National Medical Products Administration (NMPA) in January this year. The successful approval of the disposable coronary intravascular shockwave catheter marks another significant achievement for the company in innovative cardiovascular implant and interventional products, offering better treatment options for clinical patients and doctors. The industry anticipates that this will have a positive impact on the company’s future development.
 

Notably, prior to Johnson & Johnson's announcement of the acquisition of Shockwave, there were rumors that Boston Scientific intended to acquire Shockwave. However, these rumors did not materialize, possibly due to the market value being insufficiently high or Boston Scientific already having similar products.
 

Affected by Johnson & Johnson's acquisition of Shockwave, Shockwave's stock price increased by nearly 2% after the opening of the US stock market that day.
 

Disclaimer: In no event shall the information or opinions expressed in this article constitute investment advice to any person.