Johnson & Johnson has announced a significant investment in heart care with a $13-billion deal to acquire Shockwave Medical, a company known for its innovative technology that helps open clogged arteries. The health care giant revealed that it will be paying $335 in cash for each share of Shockwave, a move that has already received approval from both companies' boards of directors.
Shockwave Medical specializes in intravascular lithotripsy, a cutting-edge technology that utilizes sonic pressure waves to crack calcium lesions in arteries, thereby restoring blood flow and enabling stenting. This technology is primarily used in the treatment of coronary artery and peripheral artery disease.
This acquisition follows J&J's previous $16-billion investment in Abiomed, another cardiovascular technology company. Both acquisitions are expected to enhance J&J's MedTech division, which focuses on medical devices and is one of the company's core segments following the divestiture of its consumer health division.
Shares of Johnson & Johnson saw a slight increase of 31 cents, reaching $152.81 before the markets opened on Friday. Meanwhile, Shockwave Medical Inc., headquartered in Santa Clara, California, experienced a rise of approximately $5, with its stock price reaching $325.05.
