Johnson & Johnson has agreed to acquire Shockwave Medical, a US-based medical device company specialising in cardiovascular diseases, in an all-cash transaction valued at approximately $13.1bn.

As per the terms of the deal, shareholders of the Nasdaq-listed Shockwave Medical will be paid $335 per share as consideration.

The deal has been approved by the boards of directors of the two firms.

Shockwave Medical has developed the Intravascular Lithotripsy (IVL) technology.

IVL is designed to be a minimally invasive, catheter-based treatment for calcified arterial lesions. These lesions, capable of reducing blood flow and inducing pain or heart attacks, pose a significant risk.

Shockwave Medical’s technology is intended to transform the treatment of atherosclerotic cardiovascular disease by utilising safe sonic pressure waves to disrupt challenging calcified plaque, resulting in significantly enhanced patient outcomes.

Furthermore, through its acquisition of Neovasc last year, the company gained access to the Reducer technology, which targets refractory angina.

Currently undergoing clinical investigation in the US and CE marked in Europe, the Reducer aims to alleviate the suffering of patients worldwide by redistributing blood flow within the heart, thereby providing relief from refractory angina.

The acquisition of Shockwave Medical is expected to further strengthen Johnson & Johnson MedTech’s foothold in cardiovascular intervention.

Besides, Johnson & Johnson will broaden its medtech cardiovascular portfolio to encompass two of the most rapidly growing, innovation-driven segments in cardiovascular intervention, which are coronary artery disease (CAD) and peripheral artery disease (PAD).

The deal follows Johnson & Johnson MedTech’s acquisitions of Abiomed, a medical device technology firm focused on heart recovery, and more recently Laminar, an innovator in left atrial appendage elimination for patients with non-valvular atrial fibrillation (AFib).

Johnson & Johnson chairman and CEO Joaquin Duato said: “With our focus on Innovative Medicine and MedTech, Johnson & Johnson has a long history of tackling cardiovascular disease – the leading cause of death globally.

“The acquisition of Shockwave and its leading IVL technology provides a unique opportunity to accelerate our impact in cardiovascular intervention and drive greater value for patients, shareholders and health systems.”

Upon finalisation of the transaction, Shockwave Medical will function as a distinct business unit under Johnson & Johnson MedTech. Its financials will be incorporated into Johnson & Johnson MedTech’s cardiovascular portfolio, formerly known as Interventional Solutions.

Shockwave Medical president and CEO Doug Godshall said: “As part of a larger, more diverse organisation, with broad expertise and a core focus on improving patient outcomes, we are confident we will be able to further solidify IVL as the global standard of care for patients.”

The transaction is set to close around mid-2024 pending approval from Shockwave Medical’s shareholders and regulatory bodies, along with meeting customary closing requirements. After the transaction, Shockwave Medical’s common stock won’t be traded on the Nasdaq Global Select Market anymore.

J.P. Morgan Securities is advising Johnson & Johnson financially, while Freshfields Bruckhaus Deringer is providing legal counsel.

Shockwave Medical is being advised financially by Perella Weinberg Partners, with legal counsel provided by Fenwick & West.