Johnson & Johnson to Acquire Shockwave Medical for $13.1 Billion to Strengthen Cardiovascular MedTech Portfolio
Shockwave Medical
Cardiovascular Disease Treatment Device Developer
Neovasc
Medical Device Developer
Johnson & Johnson
Healthcare Product Manufacturers, Health Service Providers
Source: Siyu MedTech
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Under the terms of the agreement, Johnson & Johnson plans to acquire all outstanding shares of Shockwave Medical for $335 per share in cash. The boards of both companies have approved the transaction, which is valued at approximately $13.1 billion.Johnson & Johnson plans to fund this transaction through a combination of cash on hand and debt.
Upon completion of the transaction, Shockwave will operate as a business unit of Johnson & Johnson Medical Technologies.Finance belongs to the company's cardiovascular investment portfolio (formerly known as interventional solutions).
Subject to the approval of Shockwave's shareholders and other conditions, the two companies expect the transaction to be completedMid-2024Completed.
In fact, Shockwave Medical has always been an acquisition target for many leading enterprises.Focused on developing products for the treatment of calcified cardiovascular diseases,Is the world's first company to launch a shock wave balloon catheter.。
Earlier last year, media reports claimed that,Johnson & Johnson, Medtronic, and Boston ScientificAre all potential bidders.
For example, in April last year,Boston ScientificShowed 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 ofNeovasc, Inc., with a transaction amount reaching 147 million US dollars. The latterIs a professional medical device company,Its products includeMitral Valve and Angina PectorisInterventional treatment devices. Neovasc's DilemmaA depressurizer system has been developed for refractory angina ——Neovasc Reducer Stent。
▲Neovasc, Inc.Neovasc Reducer Stent
This yearEarlier,Shockwave MedicalThe CEO outlined a growth vision centered on new product launches, R&D, global expansion, and more.
It is reported that Johnson & Johnson intends 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.
▲Michael Bodner
Tim Schmid, Executive Vice President and Chairman of Johnson & Johnson Medical Technologies, stated:Shockwave Medical"Truly unique opportunities." 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.
Shockwave Medical was founded in June 2009 in California, USA, focusing on the developmentCalcified Cardiovascular Disease TreatmentThe product isThe world's first company to launch a "Shockwave Balloon Catheter"。
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.Intravascular Lithotripsy（Intravascular Lithotripsy , IVL）。
The company provides the M5 catheter for treating supra-knee peripheral artery disease, the C2 catheter for treating coronary artery disease, and the S4 catheter for treating infra-knee peripheral artery disease.
Among them, the catheter for treating peripheral arterial calcification lesions received European CE and U.S. FDA approval as early as 2018.UseThe catheter for treating coronary artery calcification lesions received European CE approval in 2018 and U.S. FDA approval in 2021.
In 2021, China's Genesis Medtech and Shockwave Medical established a joint venture in China, aiming to introduce Shockwave Medical’s products into the Chinese market. The products were successfully approved for marketing by China's National Medical Products Administration (NMPA) in May 2022. Meanwhile, its valve calcification shockwave balloon is currently in the preclinical research stage.
IVL catheters (including the Shockwave C5 for coronary arteries, and the Shockwave M5 and S4 for peripheral arteries) are delivered to calcified lesions via a 0.014-inch guidewire, with the integrated balloon expanded to 4 atm (approximately 1.4 mm) to facilitate efficient energy transfer. The emitter discharges to vaporize the fluid inside the balloon, forming rapidly expanding and collapsing bubbles that generate acoustic pressure waves. Pressure waves generate localized field effects, penetrating vascular tissue to selectively shatter calcium deposits on the inner vessel wall and intima while minimizing trauma to the vessel wall. After modification of the calcified material, the integrated balloon can then be used to dilate the lesion vessel at low pressure.
Previously, Johnson & Johnson announced its full-year 2023 financial results. The company's sales for the 2023 fiscal year were $85.2 billion (approximately 613.1 billion RMB), representing a year-over-year increase of 6.5%. Among this, the medical technology division reported sales of $30.4 billion (approximately 218.7 billion RMB), marking a year-over-year increase of 10.8%. In comparison, Medtronic's revenue for the 2023 fiscal year was $31.227 billion (approximately 224.728 billion RMB).Behind by $827 million(Approximately 5.952 billion RMB).
As of now, the top spot in the 2023 global medical device revenue can be basically confirmed, with Medtronic once again retaining the title!
ButLooking back at the acquisition by Johnson & JohnsonShockwave Medical's Financial Report,The company's total revenue for the fiscal year 2023 was US$730.2 million, representing a 49% increase compared to 2022.If we count based on the 2023 revenue, Johnson & Johnson Medical Technologies &The total revenue of Shockwave Medical has approached that of Medtronic. In the future, it is not difficult to see that Johnson & Johnson will be a strong contender for the top position in the medical device industry.
In the past five years, Johnson & Johnson Medical has maintained a steady growth pace, as if aiming to regain its former glory as the global leader. One very noticeable change is:Johnson & Johnson Medical is expanding its cardiovascular business layout.
First, cardiovascular is the second largest细分领域 in the medical device field, with a sufficiently large market space;
Second, Johnson & Johnson introduced the world's first drug-eluting stent in the cardiovascular field, but in its current business portfolio, orthopedics, surgery, and ophthalmology have already achieved global leadership.Only the cardiovascular business "held back"。
This successful acquisition of Shockwave Medical means that, after 9 years, Johnson & Johnson may...Reclaiming the Top Spot in the Global Medical Device IndustryThe Throne。
In fact, in the first three quarters of 2023, Johnson & Johnson's medical revenue reached $4.415 billion, surpassing Edwards Lifesciences ($3.793 billion), which ranked fourth globally in cardiovascular, entering the cardiovascular TOP4. In the fourth quarter, Johnson & Johnson's cardiovascular business maintained a growth of 24.7%, with annual revenue reaching $5.994 billion.
In the future, as Johnson & Johnson makes more investments, it will directly challenge the cardiovascular TOP3 (Medtronic, Abbott, and Boston Scientific).
▌Acquisition of Leader in Artificial Heart FieldAbiomed
In November 2022, Johnson & Johnson announced the acquisition of Abiomed, a leader in the artificial heart field, for $16.6 billion. With its exclusive product—the world's only FDA-approved interventional cardiac pump, Impella—it contributed $1.306 billion in revenue in 2023.
In November 2023, Johnson & Johnson announced the completion of its acquisition of Laminar, a left atrial appendage closure device company, for an upfront payment of $400 million (approximately RMB 2.6 billion).
Laminar to Receive Additional Potential Clinical and Milestone Payments in 2024 and Beyond, Company to Join Johnson & Johnson as Part of Biosense Webster, the Global Leader in Arrhythmia Treatment.
This acquisitionShockwave Medical，Johnson & Johnson'sThe cardiovascular product portfolio will expand into two high-growth areas: coronary artery disease (CAD) and peripheral artery disease (PAD).It is not difficult to see that this move by Johnson & Johnson will expand its position in the field of cardiovascular intervention.Accelerated its transformation into high-growth markets.
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Editor-in-Chief | Zhao Qing Reviewed by | Yi He
