Johnson & Johnson in talks to acquire Shockwave Medical: WSJ
Johnson & Johnson (JNJ) is in talks to acquire Shockwave Medical (SWAV), according to a report from The Wall Street Journal. Shockwave is a medical device maker that specializes in making cardiovascular products. Given the company's nearly $12 billion market cap, it could be an expensive deal for Johnson & Johnson, though the report says it is possible talks could fall apart.
Yahoo Finance's Anjalee Khemlani discusses the report in the video above.
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Editor's note: This article was written by Stephanie Mikulich.
Video Transcript
JOSH LIPTON: Mergers in the health care space and Johnson & Johnson making some news there.
ANJALEE KHEMLANI: Yes, that's right. Johnson & Johnson reportedly looking at shockwave medical according to the Wall Street Journal. That is a company that has been kind of growing in the last few years.
They've been coming out with a new area focused on really heart disease and related treatments accordingly. So whether it's directly to the heart or leg pain, that could indicate heart disease problems. That's what their medical device does.
This is an area heart. In general is an area that Johnson & Johnson focuses on. But it's important to note that its medical device business has been kind of stagnant in the past 10 years alone looking at their earnings reports.
You've seen sort of that $25 billion to $30 billion annual revenue. So this could really be a boost for the company. Shockwave really up in the last several years.
$730 million in revenue. And looking at a market valuation of about 11 billion. So could be an interesting market opportunity.
The company says it sees 14.5 billion as the market opportunity for its device. So really interesting if it goes through. It's important to note Boston Scientific was reportedly interested in it. Just a short time ago. So really interesting to see if Johnson & Johnson does, in fact, pick it up.
AKIKO FUJITA: Yeah, the stock getting a big pop today up nearly 12% there. Thanks so much for that, Anjalee.
