Investing.com UK - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Johnson & Johnson Strong Strategic Fit For Shockwave Medical, But Medtronic, Boston Scientific Could Be Other Bidder, Says Analyst

Published 27/03/2024, 20:23
Updated 27/03/2024, 21:40
© Reuters. Johnson & Johnson Strong Strategic Fit For Shockwave Medical, But Medtronic, Boston Scientific Could Be Other Bidder, Says Analyst

Benzinga - by Vandana Singh, Benzinga Editor.

Tuesday, Shockwave Medical Inc (NASDAQ:SWAV) shares traded higher following a Wall Street Journal report suggesting Johnson & Johnson (NYSE:JNJ) is reportedly in talks to acquire the company.

Shockwave Medical is a cardiovascular medical device.

In 2022, Johnson & Johnson acquired heart failure device-focused Abiomed Inc. for an upfront payment of $380.00 per share in cash, corresponding to an enterprise value of approximately $16.6 billion.

Piper Sandler says it has considered Johnson & Johnson a potential buyer due to its interest in expanding into cardiovascular devices and strong financial position.

Additionally, there were reports in May 2023 indicating Johnson & Johnson’s interest in acquiring Shockwave Medical. However, the Piper analyst writes that Shockwave Medical could thrive independently, maintaining the Overweight rating.

Piper’s analysis suggests that acquiring Shockwave Medical would likely require a substantial offer due to its profile.

Compared with Johnson & Johnson’s acquisition of Abiomed, which was about 12.5x consensus 2024 revenue without milestones and closer to 13.7x with milestones, it provides a benchmark.

Shockwave Medical reportedly sought bids around the mid-$300s per share, Piper notes, citing a StreetInsider report.

While a Johnson & Johnson-Shockwave Medical combination seems suitable, other major players like Medtronic Plc (NYSE:MDT) and Boston Scientific Corporation (NYSE:BSX), with their focus in interventional cardiology and peripheral vascular, could also be interested.

Both Medtronic and Boston Scientific had shown previous interest in acquiring Shockwave Medical.

The absence of obvious FTC issues suggests regulatory clearance wouldn’t be a major hurdle. A competitive bidding process could emerge, with Johnson & Johnson viewed as a strong strategic fit for Shockwave Medical.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Price Action: SWAV shares closed higher by 2.07% at $322.61 on Wednesday.

Photo via Wikimedia Commons

Latest Ratings for JNJ

Jan 2022Raymond JamesMaintainsOutperform
Jan 2022Morgan StanleyMaintainsEqual-Weight
Dec 2021Goldman SachsInitiates Coverage OnNeutral

View the Latest Analyst Ratings

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.