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J&J in talks to buy Shockwave Medical, WSJ reports

Published 03/26/2024, 02:33 PM
Updated 03/26/2024, 04:01 PM
© Reuters. FILE PHOTO: The logo of Johnson & Johnson is seen on the top of a Brussels' office of the company in Diegem, Belgium September 21, 2023.  REUTERS/Yves Herman/File Photo
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(Reuters) -Johnson & Johnson is in talks to buy medical device maker Shockwave Medical (NASDAQ:SWAV), the Wall Street Journal reported on Tuesday, as the healthcare giant potentially looks to expand its presence in cardiovascular devices.

Shockwave, a company that makes devices to treat heart disease, has a market capitalization of around $11 billion, according to LSEG data.

A deal could be finalized in the coming weeks if talks don't fall apart and it is also possible another suitor could emerge, the report said, citing people familiar with the matter. It did not mention the value of the deal.

WSJ's is the latest media report on a potential bid for Shockwave Medical after Bloomberg News reported last year that Boston Scientific (NYSE:BSX) was weighing an offer for the heart device maker.

When contacted for comment on the WSJ report, J&J (NYSE:JNJ) and Shockwave Medical said they do not comment on rumors or speculation.

News of the talks lifted shares of Shockwave Medical up 11.5% in afternoon trade.

The company makes a device which uses shockwaves to break down calcified plaque in heart vessels, similar to how kidney stones are treated.

© Reuters. FILE PHOTO: The logo of Johnson & Johnson is seen on the top of a Brussels' office of the company in Diegem, Belgium September 21, 2023.  REUTERS/Yves Herman/File Photo

J&J said last year it was looking for opportunities to merge with or acquire firms that could add value to its own portfolio of cardiovascular products, adding that many of its future deals would likely be small "tuck-in" acquisitions.

In 2022, the company acquired heart pump maker Abiomed (NASDAQ:ABMD) for $16.6 billion.

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