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Johnson & Johnson JNJ-N on Friday agreed to buy Shockwave Medical for US$12.5-billion, in a deal that would help broaden its portfolio of medical devices used in treating heart diseases.

The acquisition gives J&J access to a device that uses shock waves to break down calcified plaque in heart vessels, similar to how kidney stones are treated.

The conglomerate is focusing on building its cardiac-health business and spent US$16.6-billion to buy heart-pump maker Abiomed in 2022 and US$400-million to buy another heart-centric device maker, Laminar.

The company’s spate of deals in recent years to bolster other parts of its business comes as its blockbuster Crohn’s-disease drug, Stelara, faces possible rivals next year.

Shockwave’s catheter-based treatment known as intravascular lithotripsy (IVL) is used, often in combination with stents, to treat two heart conditions in which arteries get clogged with calcium deposits.

The deal, which values Shockwave at an enterprise value of about US$13.1-billion, is expected to close by mid-2024, the companies said. Shockwave posted product sales of US$730.2-million last year.

In early 2023, J&J had said it planned to focus on deals that would add value to its portfolio of cardiovascular products, and that many of its future transactions were likely to be small “tuck-in” acquisitions.

J&J expects to finance the Shockwave deal through a combination of cash on hand and debt.

J&J has offered US$335 per share in cash, or a 17-per-cent premium to the stock’s closing price in late March, when the Wall Street Journal reported that the health care conglomerate was in talks to buy the company. Shockwave shares rose 1.6 per cent to US$325.18 in premarket trading.

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