This piece was originally published on March 26th, 2024

In December, DKI recommended Shockwave Medical ($SWAV) at $190. The thesis was the company was growing quickly due to an unchallenged best-in-class product enabling stent placement in cases that were difficult due to excessive calcification of an artery. We further said that the company was a takeover target and we expected it would be acquired for more than $300 a share. Potential takeover suitors mentioned included Johnson & Johnson ($JNJ), Boston Scientific ($BSX), and Medtronic ($MDT).

Today the Wall Street Journal reported that Shockwave is in acquisition talks with Johnson & Johnson. The stock closed at $323, up 69% in the approximately four months since DKI recommended $SWAV. The report mentions the possibility of a second suitor entering the bidding. Boston Scientific offered $285 a share for Shockwave less than a year ago so it will be interesting to see if they return for another attempt to buy the company.

A round of applause for Dr. Paul Thompson, Cardiologist and member of the DKI Board of Advisors, who suggested the idea to me. A second round of applause for Interventional Cardiologist, Dan Fram, who explained why Shockwave’s product was the best possible option for difficult cases and helped me understand how he uses their devices. We did a subscribers-only webinar with them in January to explain the technology and the investment case that is available to subscribers here.

IR@DeepKnowledgeInvesting.com if you have any questions.

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