Shockwave Medical acquires Neovasc for $100m

US-based cardiovascular medical device company Shockwave Medical has signed a deal to acquire specialty medical device company Neovasc for around $100m.

As part of the deal, Shockwave Medical will gain all of Neovasc’s shares for $27.25 a share in cash, bringing the total to around $100m. There is also a possibility for shareholders to get a deferred payment worth around $47m (or $12 a share) in cash in the form of non-tradable contingent value right (CVR), subject to the achievement of regulatory milestones.

The acquisition will give Shockwave Medical access to the Neovasc Reducer System, which addresses refractory angina. This is a chronic condition where regular therapies are insufficient to manage chest pain.

The Neovasc Reducer System has the FDA’s breakthrough device designation and is enrolling patients in the COSIRA-II clinical trial. The trial is being carried out under an investigational device exemption (IDE) in order to seek FDA approval for the use of the technology in patients with coronary obstructive refractory angina.

Shockwave Medical president and CEO Doug Godshall stated: “We believe the Reducer is an excellent fit for Shockwave as it enables us to apply our capabilities to address another large, unmet need within cardiology – refractory angina. The timing is ideal as there will be no distraction to our U.S. sales organisation in the near term and, as we did with C2, our coronary device, we expect to refine our commercialisation approach and begin the development of international markets in advance of US approval. This transaction supports our commitment to drive growth through innovation and we are excited for the potential to bring even more solutions to our customers and the patients they serve with the Reducer System.”

James Spargo