Johnson & Johnson Makes Yet Another Multi-Billion MedTech Deal With Shockwave Medical
Portfolio Pulse from Vandana Singh
Johnson & Johnson (JNJ) has agreed to acquire Shockwave Medical Inc (SWAV) for $335.00 per share in cash, valuing the company at approximately $13.1 billion. This acquisition, expected to close by mid-2024, will enhance JNJ's MedTech cardiovascular portfolio, adding intravascular lithotripsy technology for treating coronary and peripheral artery disease. The deal is anticipated to be operationally accretive upon closing but will dilute JNJ's adjusted EPS in 2024 and 2025.
April 05, 2024 | 12:35 pm
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NEUTRAL IMPACT
Johnson & Johnson's acquisition of Shockwave Medical for $13.1 billion expands its cardiovascular portfolio, expected to be operationally accretive but will dilute EPS in 2024 and 2025.
The acquisition is a strategic move to enhance JNJ's MedTech division, indicating a positive long-term outlook. However, the expected EPS dilution in the short term introduces a neutral impact on the stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Shockwave Medical to be acquired by Johnson & Johnson for $335.00 per share, a deal valuing the company at approximately $13.1 billion.
The acquisition price represents a premium on SWAV's current trading price, indicating a likely positive short-term impact on SWAV's stock price. The strategic fit with JNJ's MedTech division further underscores the importance of this deal.
CONFIDENCE 95
IMPORTANCE 95
RELEVANCE 100