Johnson & Johnson Completes Acquisition of Shockwave Medical
31 May 2024 - 10:45PM
Business Wire
Strengthens Position in Highest-Growth,
Innovation-Oriented Segments of Cardiovascular Intervention
Creates Greater Opportunity to Transform the
Treatment Landscape for Cardiovascular Disease
Johnson & Johnson (NYSE: JNJ) today announced it has
completed its acquisition of Shockwave Medical. Shockwave is now
part of Johnson & Johnson and will operate as a business unit
within Johnson & Johnson MedTech.
Joaquin Duato, Chairman and Chief Executive Officer of Johnson
& Johnson, said, “Through Innovative Medicine and MedTech,
Johnson & Johnson is transforming the trajectory of
cardiovascular disease, one of the leading causes of death
globally. We are delighted to welcome the Shockwave team to Johnson
& Johnson and look forward to bringing their innovative IVL
technology to more patients around the world.”
Tim Schmid, Executive Vice President and Worldwide Chairman of
Johnson & Johnson MedTech, said, “Completing this acquisition
is a significant milestone in the expansion of our leadership
position in the medtech industry. Shockwave’s differentiated
solutions and robust pipeline represent an exciting opportunity for
Johnson & Johnson MedTech to bring more innovations to patients
in one of the largest areas of unmet medical need. We are excited
to begin collaborating directly with the Shockwave team and look
forward to a bright future together.”
This transaction further extends Johnson & Johnson MedTech’s
leadership in cardiovascular intervention. Shockwave offers the
first and only commercially available intravascular lithotripsy
(IVL) platform for coronary artery disease (CAD) and peripheral
artery disease (PAD) and complements Johnson & Johnson’s
leading positions in heart recovery (Abiomed) and electrophysiology
(Biosense Webster) to make it a category leader in four of the
largest and highest-growth medtech markets within cardiovascular
intervention.
Shockwave is ultimately expected to become Johnson & Johnson
MedTech’s thirteenth priority platform, as defined by annual sales
of at least $1 billion. The transaction is expected to accelerate
revenue growth for both Johnson & Johnson and Johnson &
Johnson MedTech. Johnson & Johnson expects the transaction to
be accretive to operating margin, but considering the impact of
financing costs, is expected to dilute adjusted earnings per share
by approximately $0.10 in 2024 and approximately $0.17 in 2025.
In connection with the completion of the transaction,
Shockwave’s common stock ceased trading on NASDAQ.
About Johnson & Johnson
At Johnson & Johnson, we believe health is everything. Our
strength in healthcare innovation empowers us to build a world
where complex diseases are prevented, treated, and cured, where
treatments are smarter and less invasive, and solutions are
personal. Through our expertise in Innovative Medicine and MedTech,
we are uniquely positioned to innovate across the full spectrum of
healthcare solutions today to deliver the breakthroughs of
tomorrow, and profoundly impact health for humanity. Learn more at
https://www.jnj.com/.
Cautions Concerning Forward-Looking Statements
- This communication contains “forward-looking statements”
regarding the acquisition of Shockwave by Johnson &
Johnson.
- The reader is cautioned not to rely on these forward-looking
statements. These statements are based on current expectations of
future events.
- If underlying assumptions prove inaccurate or known or unknown
risks or uncertainties materialize, actual results could vary
materially from the expectations and projections of Johnson &
Johnson or Shockwave. Risks and uncertainties include, but are not
limited to: challenges inherent in product research and
development, including uncertainty of clinical success and
obtaining regulatory approvals; uncertainty of commercial success
for new products; manufacturing difficulties and delays; product
efficacy or safety concerns resulting in product recalls or
regulatory action; economic conditions, including currency exchange
and interest rate fluctuations; the risks associated with global
operations; competition, including technological advances, new
products and patents attained by competitors; challenges to
patents; changes to applicable laws and regulations, including tax
laws and global health care reforms; adverse litigation or
government action; changes in behavior and spending patterns or
financial distress of purchasers of health care services and
products; and trends toward health care cost containment.
- In addition, there will be risks and uncertainties related to
the ability of the Johnson & Johnson family of companies to
successfully integrate the programs, products, technologies and
employees/operations and clinical work of Shockwave. A further list
and description of these risks, uncertainties and other factors and
the general risks associated with the respective businesses of
Johnson & Johnson and Shockwave can be found in Johnson &
Johnson’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2023, filed with the SEC on February 16, 2024,
including in the sections captioned “Cautionary Note Regarding
Forward-Looking Statements” and “Item 1A. Risk Factors,” in Johnson
& Johnson’s most recently filed Quarterly Report on Form 10-Q
for the quarterly period ended March 31, 2024, filed with the SEC
on May 1, 2024, in Johnson & Johnson’s subsequent filings with
the SEC and in Shockwave’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2023, filed with the SEC on February
26, 2024, including in the sections captioned “Special Note
Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,”
in Shockwave’s Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2024, filed with the SEC on May 6, 2024, and
in Shockwave’s subsequent filings with the SEC. Copies of these
filings, as well as subsequent filings, are available online at
www.sec.gov, www.jnj.com, https://shockwavemedical.com/ or on
request from Johnson & Johnson or Shockwave. Neither Johnson
& Johnson nor Shockwave undertakes to update any
forward-looking statement as a result of new information or future
events or developments, except as required by law.
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Johnson & Johnson
Media Contact: Ryan Carbain
media-relations@its.jnj.com
Investor Contact: Tracy Menkowski
investor-relations@its.jnj.com
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