Boston Scientific reportedly in talks to acquire cardiovascular device maker Shockwave Medical
por John R. Fischer, Senior Reporter | April 26, 2023
Business Affairs
Cardiology
Boston Scientific is allegedly discussing a possible acquisition of Shockwave Medical.
Boston Scientific has allegedly set its sights on acquiring Shockwave Medical, a cardiovascular device company in Santa Clara, California that develops intravascular lithotripsy solutions for breaking down calcium deposits in arteries with sound waves to expand blood vessels, for an undisclosed price that would make it the company’s second largest acquisition ever.
Bloomberg broke the news, crediting sources with knowledge of the matter who asked not to be identified because the discussions are private, and said that Boston Scientific is in the market for a deal that will enhance its cardiovascular device portfolio. The deal would only fall behind its 2006 acquisition of Guidant Corp. for more than $27 billion.
Shockwave has seen its shares rise 29% in the past year, and was reportedly consulting advisers about mergers or partnerships last year. It saw a $10% boost in shares on April 21 on Nasdaq to $286.46, bringing its market value to about $10.5 billion, reported Bloomberg. Boston Scientific, meanwhile, fell 2.9% to $51.11.
The same day, Adam Maeder, director of equity research at Piper Sandler said in a report that a deal would make “a lot of strategic sense,” but that Boston Scientific would likely end up paying a hefty amount, and that the size of the acquisition may lead the FTC, which under the Biden administration has cracked down more on large sales, to get involved.
UBS analyst Danielle Antalffy said a deal was unlikely as it would potentially dilute Boston Scientific’s bottom line and limit its financial position, reported Seeking Alpha.
She also pointed out that both companies traded flat in premarket Monday, and that Boston Scientific would have to pay at least an estimated $15 billion, contrasting with its past deals.
Agreeing with her was Marie Thibault, managing director and medical technology and digital health analyst, of the financial firm BTIG, who said that "BSX has historically favored smaller acquisitions (couple hundred million to a few billion dollars)," and that "the size and nature of such a potential acquisition does surprise us."
Earlier in April, Shockwave Medical completed its own acquisition of Neovasc, which developed a first-of-its-kind technology called the Neovasc Reducer System for treating refractory angina, chronic chest pain that cannot be controlled with conventional therapies, for $147 million. The solution alters blood flow within the myocardium of the heart and increases the perfusion of oxygenated blood to ischemic areas of the heart muscle.
Additionally, the Centers for Medicare & Medicaid Services recently proposed a new rule that would create three high-paying codes for coronary intravascular lithotripsy, increasing reimbursement with Shockwave devices, according to Investor’s Business Daily.
Boston Scientific told HCB News that it does not “comment on rumors or speculation.”
Bloomberg broke the news, crediting sources with knowledge of the matter who asked not to be identified because the discussions are private, and said that Boston Scientific is in the market for a deal that will enhance its cardiovascular device portfolio. The deal would only fall behind its 2006 acquisition of Guidant Corp. for more than $27 billion.
Shockwave has seen its shares rise 29% in the past year, and was reportedly consulting advisers about mergers or partnerships last year. It saw a $10% boost in shares on April 21 on Nasdaq to $286.46, bringing its market value to about $10.5 billion, reported Bloomberg. Boston Scientific, meanwhile, fell 2.9% to $51.11.
The same day, Adam Maeder, director of equity research at Piper Sandler said in a report that a deal would make “a lot of strategic sense,” but that Boston Scientific would likely end up paying a hefty amount, and that the size of the acquisition may lead the FTC, which under the Biden administration has cracked down more on large sales, to get involved.
UBS analyst Danielle Antalffy said a deal was unlikely as it would potentially dilute Boston Scientific’s bottom line and limit its financial position, reported Seeking Alpha.
She also pointed out that both companies traded flat in premarket Monday, and that Boston Scientific would have to pay at least an estimated $15 billion, contrasting with its past deals.
Agreeing with her was Marie Thibault, managing director and medical technology and digital health analyst, of the financial firm BTIG, who said that "BSX has historically favored smaller acquisitions (couple hundred million to a few billion dollars)," and that "the size and nature of such a potential acquisition does surprise us."
Earlier in April, Shockwave Medical completed its own acquisition of Neovasc, which developed a first-of-its-kind technology called the Neovasc Reducer System for treating refractory angina, chronic chest pain that cannot be controlled with conventional therapies, for $147 million. The solution alters blood flow within the myocardium of the heart and increases the perfusion of oxygenated blood to ischemic areas of the heart muscle.
Additionally, the Centers for Medicare & Medicaid Services recently proposed a new rule that would create three high-paying codes for coronary intravascular lithotripsy, increasing reimbursement with Shockwave devices, according to Investor’s Business Daily.
Boston Scientific told HCB News that it does not “comment on rumors or speculation.”
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