Johnson & Johnson to acquire Shockwave medical for $12.5 Billion

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In a significant move to expand its portfolio of medical devices for heart disease treatment, Johnson & Johnson (J&J) has agreed to acquire Shockwave Medical for $12.5 billion. This deal, J&J’s largest since its acquisition of heart pump maker Abiomed in 2022, aims to enhance its offerings in cardiovascular care.

The acquisition will grant J&J access to Shockwave’s innovative medical device, which utilizes shockwaves to break down calcified plaque in heart vessels, akin to the treatment of kidney stones. The $335 per share cash offer represents a 17% premium over Shockwave’s closing price in late March, signaling confidence in the potential of this technology.

Shockwave’s shares saw a 1% increase to $323.45 in premarket trading following the announcement. The transaction, valued at approximately $13.1 billion, is anticipated to be finalized by mid-2024, pending regulatory approvals and other customary closing conditions.

Source: Reuters

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