We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shockwave Medical's (SWAV) New Buyout to Boost Patient Outcome
Read MoreHide Full Article
Shockwave Medical, Inc. (SWAV - Free Report) has announced its entry into a definitive agreement to acquire Neovasc Inc. The transaction is expected to be completed in the first half of 2023, subject to customary closing conditions.
Neovasc is a company focused on the minimally invasive treatment of refractory angina. The buyout will add its Reducer System to Shockwave Medical’s portfolio of products.
The Neovasc Reducer System has been granted Breakthrough Device designation by the FDA, is CE-marked and is currently enrolling patients in the COSIRA-II study. The study is a randomized clinical trial which is being conducted under an Investigation Device Exemption intended to support the FDA approval for patients with coronary obstructive refractory angina.
The latest acquisition is expected to aid Shockwave Medical in significantly expanding its global footprint in the cardiovascular disease treatment space and solidifying its position worldwide.
Rationale Behind the Buyout
Per estimates, in the United States and the European Union (EU) alone, up to 300,000 new patients with obstructive coronary disease who are ineligible for conventional revascularization experience refractory angina each year, despite guideline-directed medical therapy. It is also estimated that up to 500,000 new patients with angina and non-obstructive coronary artery disease are added in the United States and the EU each year.
Per Shockwave Medical’s management, the Reducer will likely be an excellent fit for the company as it is expected to enable it to apply its capabilities to address another large, unmet need within cardiology — refractory angina.
Industry Prospects
Per Shockwave Medical’s estimates, the market for refractory angina is anticipated to be around $5 billion. The company is also optimistic about strengthening its foothold in the market as it believes there will be no distraction to its U.S. sales organization in the near term. Shockwave Medical also expects to refine its commercialization approach and begin the development of international markets in advance of U.S. approval, similar to what it did with its coronary device, C2.
Given the market potential, the buyout seems to have been timed well.
Notable Developments
In November 2022, Shockwave Medical announced that the final 1,373-patient cohort analysis from the Disrupt PAD III Observational Study again demonstrated consistent Intravascular Lithotripsy (IVL) outcomes in complex and challenging lesions across multiple peripheral vessel beds.
The same month, Shockwave Medical reported its third-quarter 2022 results, where it registered a robust uptick in its overall top line. During the reported quarter, it received the FDA’s clearance for the Shockwave IVL System with the Shockwave L6 Peripheral IVL Catheter. The company also received CE marking for the Shockwave C2+ coronary catheter in Europe and was granted reimbursement for the Shockwave C2 Coronary IVL Catheter by the Japanese Ministry of Health, Labour and Welfare.
Preliminary Results
Shockwave Medical has also reported its preliminary results for the fourth quarter and full-year 2022.
For the fourth quarter, it expects its revenues to be between $143 million and $144 million, reflecting an increase of 70-71% year over year. The Zacks Consensus Estimate of $142.2 million lies below the preliminary figure.
Per Shockwave Medical, its full-year revenues are likely to be $489 million-$490 million, reflecting an increase of 106-107% over comparable 2021 figures. The Zacks Consensus Estimate of $486.6 million lies below the preliminary figure.
Price Performance
Shares of Shockwave Medical have gained 32.9% in the past year against the industry’s 13.7% decline and the S&P 500's 13.4% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Shockwave Medical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
AMN Healthcare has gained 5.4% against the industry’s 24% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 46.8% against the industry’s 2.3% decline over the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 25.6% against the industry’s 2.3% decline over the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shockwave Medical's (SWAV) New Buyout to Boost Patient Outcome
Shockwave Medical, Inc. (SWAV - Free Report) has announced its entry into a definitive agreement to acquire Neovasc Inc. The transaction is expected to be completed in the first half of 2023, subject to customary closing conditions.
Neovasc is a company focused on the minimally invasive treatment of refractory angina. The buyout will add its Reducer System to Shockwave Medical’s portfolio of products.
The Neovasc Reducer System has been granted Breakthrough Device designation by the FDA, is CE-marked and is currently enrolling patients in the COSIRA-II study. The study is a randomized clinical trial which is being conducted under an Investigation Device Exemption intended to support the FDA approval for patients with coronary obstructive refractory angina.
The latest acquisition is expected to aid Shockwave Medical in significantly expanding its global footprint in the cardiovascular disease treatment space and solidifying its position worldwide.
Rationale Behind the Buyout
Per estimates, in the United States and the European Union (EU) alone, up to 300,000 new patients with obstructive coronary disease who are ineligible for conventional revascularization experience refractory angina each year, despite guideline-directed medical therapy. It is also estimated that up to 500,000 new patients with angina and non-obstructive coronary artery disease are added in the United States and the EU each year.
Per Shockwave Medical’s management, the Reducer will likely be an excellent fit for the company as it is expected to enable it to apply its capabilities to address another large, unmet need within cardiology — refractory angina.
Industry Prospects
Per Shockwave Medical’s estimates, the market for refractory angina is anticipated to be around $5 billion. The company is also optimistic about strengthening its foothold in the market as it believes there will be no distraction to its U.S. sales organization in the near term. Shockwave Medical also expects to refine its commercialization approach and begin the development of international markets in advance of U.S. approval, similar to what it did with its coronary device, C2.
Given the market potential, the buyout seems to have been timed well.
Notable Developments
In November 2022, Shockwave Medical announced that the final 1,373-patient cohort analysis from the Disrupt PAD III Observational Study again demonstrated consistent Intravascular Lithotripsy (IVL) outcomes in complex and challenging lesions across multiple peripheral vessel beds.
The same month, Shockwave Medical reported its third-quarter 2022 results, where it registered a robust uptick in its overall top line. During the reported quarter, it received the FDA’s clearance for the Shockwave IVL System with the Shockwave L6 Peripheral IVL Catheter. The company also received CE marking for the Shockwave C2+ coronary catheter in Europe and was granted reimbursement for the Shockwave C2 Coronary IVL Catheter by the Japanese Ministry of Health, Labour and Welfare.
Preliminary Results
Shockwave Medical has also reported its preliminary results for the fourth quarter and full-year 2022.
For the fourth quarter, it expects its revenues to be between $143 million and $144 million, reflecting an increase of 70-71% year over year. The Zacks Consensus Estimate of $142.2 million lies below the preliminary figure.
Per Shockwave Medical, its full-year revenues are likely to be $489 million-$490 million, reflecting an increase of 106-107% over comparable 2021 figures. The Zacks Consensus Estimate of $486.6 million lies below the preliminary figure.
Price Performance
Shares of Shockwave Medical have gained 32.9% in the past year against the industry’s 13.7% decline and the S&P 500's 13.4% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Shockwave Medical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has gained 5.4% against the industry’s 24% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 46.8% against the industry’s 2.3% decline over the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 25.6% against the industry’s 2.3% decline over the past year.