Shares of medical equipment maker ShockWave Medical Inc. (NASDAQ: SWAV) are trading near a 52-week high amid rumors that the ShockWave business could be sold, with Johnson & Johnson named as a likely buyer.
The potential sale was reported on Tuesday, March 26. According to Reuters sources, Shockwave Medical and Johnson & Johnson are already in talks and a deal could be concluded in the coming weeks.
Financial details of the possible deal are unknown, and the companies themselves have not commented on the rumors.
Shockwave has a valuable technology called intravascular lithotripsy, which uses acoustic waves to destroy plaque (calcium deposits) inside blood vessels. It is a minimally invasive technology that can prevent life-threatening complications of cardiovascular disease.
The ShockWave acoustic stent can be used to clean vessels in the heart as well as peripheral vessels, meaning the system can be used widely. Its advantages may be of interest to Johnson & Johnson, which has its own medical technology division. In particular, these are navigation systems for heart surgery, catheters for diagnostics and surgical interventions, and other products.
The innovative ShockWave technology could be a good addition to this Johnson & Johnson portfolio, particularly because it is combined with Johnson & Johnson’s software and developments in the field of minimally invasive delivery of surgical instruments to different areas of the heart and blood vessels.
SWAV shares closed at $325.63 on March 28, trading on April 11. Market cap was $12.18 billion.
