The healthcare conglomerate will buy medical device maker Shockwave Medical (SWAV.O). This company makes a device that uses shockwaves to break down calcified plaque in heart vessels, mirroring the approach used to dismantle kidney stones. It is the latest move by J&J to boost its portfolio of cardiovascular medical devices, which include its flagship stents and new drugs for treating vascular disease.

The transaction, which will be financed through a combination of cash and debt, is expected to close in the second quarter of 2024. Shockwave Medical will become part of Johnson & Johnson’s MedTech division. According to a statement from the companies, the deal is valued at about $12.5 billion.

Each year, more than 600,000 people in the United States die of heart disease – the leading cause of death for both men and women. The condition is caused by a buildup of artery-blocking plaque, which can restrict blood flow to the heart and brain.

A stent is a small mesh-like device doctors use to open blood vessels and allow blood to flow through. Stents are often implanted for patients with coronary artery narrowing, also known as atherosclerosis. The stent helps restore normal blood flow and prevent future blockages, but it can become clogged by calcified plaque, which is a significant cause of heart attack and stroke.

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Shockwave Medical’s Intravascular Lithotripsy (IVL) technology, which combines sonic pressure waves that have been traditionally used to break up kidney stones in lithotripsy with innovative cardiology tools, allows interventional cardiologists to crack up and dismantle calcified plaque easily. This enables the artery to be safely opened, allowing doctors to perform a percutaneous coronary intervention (PCI), and in some cases, eliminates the need for open heart surgery.

Several studies have shown that IVL significantly increases the range of patients for whom stent placement is possible and improves stent performance. It has a broad range of applications, including PCI for patients with severe stenosis, refractory angina, and inoperable coronary artery disease.

In addition to its IVL device, Shockwave has been building up its cardiac-related portfolio in recent years through acquisitions and new product launches. In 2023, it acquired Neovasc, a company focused on advanced heart disease; launched the Shockwave L6 Peripheral IVL catheter for large peripheral blood vessels; and gained insurance reimbursement wins in the US for its Coronary IVL procedure.

The news of a potential acquisition sent Shockwave’s stock surging this week. On Thursday, its shares rose as much as 18% before closing up 15.9%.