$13.1 billion blockbuster acquisition, pharmaceutical giants swallow up medical device leaders!

Source: Databao

Next week, 64 listed companies will usher in the lifting of restricted shares.

Johnson & Johnson Inc.'s $13.1 billion acquisition of cardiovascular medical device giant

On April 5, the dust finally settled on the Shockwave acquisition rumors. Johnson & Johnson (JNJ) and Shockwave Medical jointly announced that Johnson & Johnson will acquire all outstanding shares of Shockwave for $335 per share in cash, equivalent to about $13.1 billion (about 94.8 billion yuan), a 4.7% premium to Shockwave's SWAV (Thursday's closing price was $319.99). Johnson & Johnson intends to fund the deal in a combination of cash and debt. The transaction is expected to close in mid-2024, subject to Shockwave shareholder approval and other closing conditions.

Shockwave Medical closed up 1.98% at $326.34 a share on Friday as a result of the acquisition.

In June 2009, Shockwave Medical was founded in California, USA. The company focuses on the development of products for the treatment of calcified cardiovascular diseases, and the world's first product "shockwave balloon catheter". The Company's goal is to establish a new standard for medical devices in the treatment of atherosclerotic cardiovascular disease, Intravascular Lithotripsy (IVL), through its acoustic pressure wave differentiation and proprietary local delivery for the treatment of calcified plaques. Since the 80s of the 20th century, this therapy has been based on lithotripsy to remove kidney stones and is gradually being applied in other areas such as pain management, cardiac rehabilitation, neurotherapy, etc.

According to a press statement, Shockwave has treated 400,000 patients worldwide with this method. The company was first approved by the U.S. Food and Drug Administration (FDA) in 2016 and went public in 2019 with a share price of $17.

Tim Schmid, executive vice president and chairman of Johnson & Johnson Medical Technologies, said Shockwave Medical presents an "opportunity to make a real difference." The Company's IVL technology for the treatment of coronary artery disease (CAD) and peripheral artery disease (PAD) and its robust product pipeline are unique. He believes the deal will strengthen the company's position in the medical technology sector, especially in the field of cardiovascular intervention.

In recent years, Johnson & Johnson has made frequent acquisitions in the cardiovascular field. In 2022, Johnson & Johnson acquired medical device maker Abiomed for $16.6 billion. The company's flagship product is the Impella heart pump, which is the world's most advanced cardiovascular disease treatment technology and the earliest commercial product of interventional artificial heart, known as "the world's smallest artificial heart". To date, more than 200,000 patients worldwide have been treated with the Impella range of products.

The market value of the ban will be lifted next week, nearly 60 billion yuan

According to the statistics of Securities Times and Databao, next week (April 8 to 12), in addition to the listed new shares, 64 listed companies in the A-share market will usher in the lifting of the ban on restricted shares. Based on the latest price of individual stocks, the total market value of the 64 companies corresponding to the lifting of the ban is 59.684 billion yuan.

In terms of scale, the market value of Yuntian Lifei-U ranked first, with 6.223 billion yuan, and Nanxin Technology ranked second, with a market value of 5.903 billion yuan. The types of lifting of the above two shares are the restricted sale of the original shareholders of the initial offering and the initial strategic placement of shares. Hengshuai shares and CLP Hong Kong ranked third and fourth respectively, with a market value of 4.672 billion yuan and 4.471 billion yuan respectively, all of which were restricted shares of the original shareholders for the first time. In addition, Shaanxi Energy, Jiangyan Group, Mustang Battery, and CICC Irradiation have lifted the ban on market value of more than 2 billion yuan.

Yuntian Lifei-U is an artificial intelligence enterprise. The company previously said on the interactive platform that it signed a strategic cooperation agreement with Zhuhai Airshow Group Co., Ltd. on February 27. In the future, the company will make full use of leading artificial intelligence technologies such as large models and AI chips, and work with Zhuhai Airshow Group and other enterprises in the field of low-altitude economy to carry out strategic cooperation in the fields of building a low-altitude economic industrial chain and building a demonstration site for low-altitude economic cooperation. In addition, the company also said that its AI chips can be widely used in AIoT edge video, mobile robots and other scenarios.

Compared with the market capitalization, the lifting ratio (the proportion of the number of unrestricted shares to the total share capital) can better reflect the impact of the lifting of the ban on the stock price of individual stocks. Among the above 64 shares, a total of 31 shares have been released with a proportion of more than 10%. Hengshuai shares, Hangzhou Colin, Mustang Battery, True Love Beauty, and Shengjian Environment ranked first in terms of lifting the ban, with 75%, 75%, 75%, 68.18%, and 64.15% respectively, and the types of lifting the ban were all restricted shares of the original shareholders for the first time.

Hengshuai shares have the highest lifting ratio, which is 75%. The company is an independent leader in A-share automotive micro-motors, mainly engaged in two major fields: motor technology and fluid technology, accounting for more than 90% of the total. The company expects to achieve a profit of 195 million yuan to 215 million yuan in 2023, a year-on-year increase of 33.99% to 47.74%. During the reporting period, the company's motor business grew rapidly, and the revenue in the field of fluid technology products also maintained stable growth.

Guoyuan Securities said that with the wave of intelligence and new energy, it is expected that the number of micro-motors used in bicycles and the value of bicycles will increase year by year, and the domestic automotive micro-motor market is expected to reach 42.47 billion yuan by 2026, with a compound growth rate of 6.8% in 2020~2026. Considering that the company has forward-looking layout of ADAS active sensing cleaning system, it will continue to benefit from the trend of automotive intelligence and is optimistic about the company's medium and long-term growth space.

In addition, the 6 shares of Baichu Electronics, Guansheng Shares, Aopu Home Furnishing, Sinoma International, Xianghe Industrial, and Sinochem International have a small proportion of less than 2%, and the types of lifting are all general equity incentive or equity incentive restricted shares. Generally speaking, the holders of restricted shares of equity incentive type are relatively dispersed, and the impact of the lifting of the ban on such restricted shares on the stock price is relatively limited.

Disclaimer: All information content of Databao does not constitute investment advice, the stock market is risky, and investment needs to be cautious.

Editor-in-charge: Zhu Yumeng

Proofreader: Tao Qian

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