Johnson & Johnson's $13B Shockwave Medical Deal Accelerates MedTech Strategy, Analyst Says
Portfolio Pulse from Vandana Singh
Johnson & Johnson (NYSE:JNJ) has agreed to acquire Shockwave Medical Inc (NASDAQ:SWAV) for $335 per share, totaling an enterprise value of approximately $13.1 billion. This acquisition is part of Johnson & Johnson's strategy to enhance its MedTech division, focusing on cardiovascular intervention and moving into higher-growth markets. Goldman Sachs highlighted this move as strategic, aiming to revamp the MedTech division's growth. The acquisition is expected to contribute significantly to Johnson & Johnson's growth, with a projected MedTech business growth rate of 5.1% from 2024 to 2030.
April 08, 2024 | 5:27 pm
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POSITIVE IMPACT
Johnson & Johnson's acquisition of Shockwave Medical for $13.1 billion marks a significant step in enhancing its MedTech division, focusing on cardiovascular intervention and higher-growth markets.
The acquisition of Shockwave Medical is a strategic move for Johnson & Johnson, aiming to strengthen its MedTech division and focus on higher-growth markets. This could lead to increased investor confidence and potential stock price appreciation in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Shockwave Medical Inc is being acquired by Johnson & Johnson for $335 per share, totaling an enterprise value of approximately $13.1 billion.
Shockwave Medical's acquisition by Johnson & Johnson at $335 per share represents a premium on its current trading price, indicating a positive short-term impact on SWAV's stock price due to the acquisition premium.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100