USA – Johnson & Johnson (J&J) continues to expand its medical technology arm, cementing its leadership in the cardiovascular market with the US $13.1 billion acquisition of Shockwave Medical.
The deal brings Shockwave’s advanced intravascular lithotripsy (IVL) technology, which breaks up calcium deposits in coronary arteries, into J&J’s medtech portfolio.
This acquisition reinforces J&J’s commitment to high-growth segments, particularly in cardiovascular intervention, where unmet medical needs and market opportunities remain significant.
J&J’s medtech division delivered US $30.4 billion in sales last year, marking a robust 12.4% growth and contributing 35% of the company’s total revenues.
Much of this success stems from strategic mergers and acquisitions, particularly in cardiovascular care.
The acquisition of heart pump manufacturer Abiomed for US $16.6 billion in 2022 added considerable momentum, driving 4.7% of the division’s 2023 growth.
Shockwave Medical is now set to build on this foundation, enhancing J&J’s ability to address cardiovascular conditions with innovative solutions.
Joaquin Duato, Chairman and CEO of Johnson & Johnson, highlighted the significance of the deal: “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.”
Following the close of the transaction, J&J MedTech will become a leader across four high-growth cardiovascular segments, strengthening its position in areas like heart failure, where growth potential remains substantial.
CFO Joe Wolk emphasized that both Shockwave and Abiomed operate in underdeveloped markets, with current penetration levels below 10%.
J&J plans to invest heavily in these segments to drive long-term growth and deliver transformative therapies.
In addition to cardiovascular intervention, J&J’s medtech strategy includes expanding into other high-demand areas. For instance, in late 2023, the company acquired Laminar for US $400 million.
Laminar specializes in left atrial appendage elimination technology for patients with non-valvular atrial fibrillation (AFib), further enhancing J&J’s capabilities in managing complex cardiac conditions.
Balancing Medtech with Pharma Innovations
While J&J’s medtech division continues to rise, its pharmaceutical arm remains a cornerstone of the company’s overall strategy.
At the end of 2023, J&J outlined plans to deliver over 20 novel therapies and 50 product expansions by 2030.
J&J has also pursued M&A opportunities to bolster its pharmaceutical pipeline, including the recent US $2 billion acquisition of Ambrx Biopharma.
This move strengthens J&J’s position in the oncology market, specifically in antibody-drug conjugates (ADCs).
Ambrx’s ADC technology combines monoclonal antibodies with chemotherapeutic agents to precisely target cancer cells, improving efficacy while reducing side effects compared to traditional chemotherapy.
Biljana Naumovic, J&J’s Worldwide VP of Oncology, underscored the potential: “ADCs are transforming the solid tumor treatment paradigm by delivering cytotoxic payloads directly to tumor cells.”
Additionally, the FDA’s recent approval of Rybrevant (amivantamab-vmjw) for non-small cell lung cancer (NSCLC) patients demonstrates J&J’s continued focus on innovative oncology treatments.
