Shockwave Medical Seeks To Bolster Its Cardiovascular Disease Portfolio With Neovasc Acquisition

• Shockwave Medical Inc (NASDAQ: SWAV) has agreed to acquire Neovasc Inc (NASDAQ: NVCN) for an upfront cash payment of $27.25 per share, corresponding to an enterprise value of approximately $100 million.

• The upfront cash consideration represents a 27% and 68% premium to the closing price and 30-day VWAP, respectively, of Neovasc's common shares on Jan. 13, 2023.

• Neovasc shareholders will also receive a potential deferred payment in the form of a non-tradable contingent value right (CVR), entitling the holder to receive up to an additional $12 per share in cash if certain regulatory milestones are achieved.

• Shockwave expects to complete the transaction in the first half of 2023.

• Neovasc's Innovative Reducer System will target the estimated $5 billion refractory angina market.

• The Neovasc Reducer System has been granted Breakthrough Device designation by the FDA, is approved in the European Union, and is currently enrolling patients in the COSIRA-II study to support FDA approval for coronary obstructive refractory angina.

• Concurrently, Shockwave Medical reported interim Q4 FY22 sales of $143-$144 million, up 70%-71%. Q4 FY22 U.S. Coronary revenue is expected to be $81-$82 million.

• Interim sales for FY22 are anticipated to be $489-$490 million, up 106%-107%.

• Shockwave Medical projects FY23 revenue of $660-$680 million, up approximately 35%-39% Y/Y.

• Price Action: SWAV shares are down 9.37% at $183.00, and NVCN shares are up 31.75% at $28.38 during the premarket session on the last check Tuesday.

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