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Shockwave is in Takeover Talks

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. if you have any questions.


Information contained in this report is believed by Deep Knowledge Investing (“DKI”) to be accurate and/or derived from sources which it believes to be reliable; however, such information is presented without warranty of any kind, whether express or implied and DKI makes no representation as to the completeness, timeliness or accuracy of the information contained therein or with regard to the results to be obtained from its use.  The provision of the information contained in the Services shall not be deemed to obligate DKI to provide updated or similar information in the future except to the extent it may be required to do so. 


The information we provide is publicly available; our reports are neither an offer nor a solicitation to buy or sell securities. All expressions of opinion are precisely that and are subject to change. DKI, affiliates of DKI or its principal or others associated with DKI may have, take or sell positions in securities of companies about which we write. 


Our opinions are not advice that investment in a company’s securities is suitable for any particular investor. Each investor should consult with and rely on his or its own investigation, due diligence and the recommendations of investment professionals whom the investor has engaged for that purpose. 


In no event shall DKI be liable for any costs, liabilities, losses, expenses (including, but not limited to, attorneys’ fees), damages of any kind, including direct, indirect, punitive, incidental, special or consequential damages, or for any trading losses arising from or attributable to the use of this report. 

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