Report: Medtronic, Johnson & Johnson consider Shockwave Medical acquisition after Boston Scientific talks stall
Two massive names in healthcare, Medtronic and Johnson & Johnson, are interested in a potential acquisition of Shockwave Medical, the California-based company known for its intravascular lithotripsy (IVL) technology, according to a new report.
This latest update comes from StreetInsider, which is once again citing an anonymous source familiar with the negotiations. StreetInsider was also the first outlet to report that Boston Scientific’s efforts to acquire Shockwave Medical hit a snag. Seeking Alpha reported on the update as well.
When Bloomberg first reported on Boston Scientific’s interest in Shockwave Medical back in April, the site speculated that any deal would be one of the biggest acquisitions in Boston Scientific’s history.
Shockwave Medical’s stock price closed at $289.18 per share on Wednesday, May 10. The price was up and down much of May 11, likely due to both the company’s strong Q1 performance and the Medtronic/Johnson & Johnson update from StreetInsider. As the markets closed Thursday, May 11, the price was sitting at $302.68 per share, an increase of more than 4.5%.
Why Medtronic, Johnson & Johnson or Boston Scientific would want to acquire Shockwave Medical
Shockwave Medical has made a significant impression on the interventional cardiology space in recent years thanks to the continued success of its IVL technology, which is approved by the U.S. Food and Drug Administration for the treatment of both severely calcified coronary artery disease and peripheral artery disease. The technology uses focused ultrasonic energy, or shock waves, to crack the calcium, rather than traditional balloon angioplasty, which can cause vessel trauma and cannot always break the hard deposits. The company projects its 2023 revenue to land somewhere in the $700-720 million range, up considerably from the $660-680 it had previously projected.
Shockwave Medical has reached three key milestones in 2023 alone. The company agreed to acquire Neovasc, a medical device company focused on advanced heart disease, for approximately $100 million; benefited from expanded Society for Cardiovascular Angiography and Interventions recommendations; and launched a new IVL catheter, designed to treat calcified lesions in large peripheral blood vessels, in the United States.
“Our global teams’ execution continues to be extraordinary, as demonstrated by our record results in all of our product and geographic areas,” Doug Godshall, president and CEO of Shockwave Medical, said in a recent statement highlighting the company’s performance. “The consistent high growth we have experienced over the past few years has further reinforced our drive to continue rapidly growing our core IVL business and to also innovate and develop additional solutions for patients with unmet needs.”
As one might expect, Shockwave Medical and the other vendors are not commenting on any possible negotiations at this time.
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.