Shockwave Medical To Acquire Neovasc; Announces Preliminary Revenues And Guidance

Shockwave Medical, Inc. (SWAV) has entered into a definitive agreement to acquire Neovasc Inc. (NVCN). Shockwave will acquire all outstanding Neovasc shares for an upfront cash payment of $27.25 per share, corresponding to an enterprise value of approximately $100 million. Neovasc shareholders will also receive a potential deferred payment in the form of a non-tradable contingent value right entitling the holder to receive up to an additional $12 per share in cash if certain regulatory milestones are achieved. The Board of Neovasc has unanimously approved the arrangement. The transaction will be implemented by way of a court-approved plan of arrangement.

Neovasc is a specialty medical device company that develops, manufactures, and markets products for the cardiovascular marketplace. Its products include Neovasc Reducer System to address refractory angina. It has been granted Breakthrough Device designation by the FDA, is CE-marked and is currently enrolling patients in the COSIRA-II study.

Separately, Shockwave Medical announced preliminary revenue for the fourth quarter to be between $143 million and $144 million, an increase of 70% to 71% compared to the fourth quarter of 2021. Preliminary unaudited revenue for the full year 2022 is expected to be between $489 million and $490 million, an increase of 106% to 107%.

Shockwave Medical expects revenue for the full year 2023 to range from $660 million to $680 million, a growth of approximately 35% to 39% over 2022.

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