The Johnson & Johnson share price has been a disappointment over the last 18 months, basically flat while the market has soared. I was encouraged to see them announcing a deal last week to buy Shockwave Medical for $13 billion.
Shockwave specialises in cardiac medical devices which use waves to break down calcified plaque in heart vessels. This acquisition will fit nicely into J&J's existing cardiac health division which includes heart pump-maker Abiomed which they bought for $17 billion in 2022.
Over the years, we have watched Stryker successfully build their medical devices business through bolt-on deals. If you have good relationships with hospitals and doctors, world-class sales, service and distribution teams then acquisition-led growth can work well.
J&J is a sleeping giant which will hopefully awaken soon. Sizable deals like this should get investors' hearts pumping, so to speak.