Boston Scientific is looking to get back in the M&A game, and it may have its eye on Shockwave Medical and its set of blood vessel-clearing catheters, according to a report from Bloomberg.
The deal could become one of Boston Scientific’s largest deals ever, possibly ranking in the double-digit billions, the report said. Shockwave’s stock has gained about 45% from the start of the year and was trading at about $260 per share before the price spiked to about $290 last Friday on the news of a possible takeover, leaving it with a $10.5 billion market cap.
In mid-March, the California-based company announced the U.S. launch of a new ultrasound-powered catheter designed for cracking open severely calcified blockages within blood vessels in the arms and legs.
Using what Shockwave dubs intravascular lithotripsy, its devices emit sonic waves to break down deposits along the vessel walls; the company’s portfolio also includes catheters sized for the heart’s smaller coronary arteries. In addition, Shockwave recently completed its acquisition of Neovasc, adding to its catalog the Reducer heart implant for treating chest pain.
For 2022, Shockwave logged $489.7 million in revenues—more than twice the amount it pulled in the year before—while its operating expenses topped $300 million, growing about 50% alongside an expanding headcount. That sales growth was driven by increasing adoption of its coronary lithotripsy catheters in the U.S. as well as internationally, according to the company.
As of February, Shockwave had projected its 2023 revenues to top out between $660 million and $680 million, or about 35% over last year’s numbers.
According to Bloomberg, the ongoing talks are in early stages and may not lead to a deal.
Boston Scientific made it on our list of the top 10 largest medtech acquisitions of the last year—even though 2022 saw declines in deal value compared to 2021’s pandemic-boosted high points. The company shelled out $1.75 billion to buy Baylis Medical, with its devices to help surgeons better access the interior chambers of the heart.
More recently, Boston Scientific agreed to set down $523 million last December to obtain a majority stake in Acotec, a China-based medtech focused on cardiovascular treatments such as drug-coated balloons and other angioplasty hardware.
Boston Scientific has scheduled the release of its 2023 first-quarter earnings for April 26; Shockwave has its report set for May 8.