Penumbra detects combination with Shockwave Medical

Penumbra detects combination with Shockwave Medical

Shockwave Medical was working with an adviser to study a merger or partnership with another health-care firm after receiving takeover interest. Any transaction would extend a dealmaking boom in the sector, with companies pairing up to build scale and diversify as the medical industry grapples with an aging population and the coronavirus pandemic.

Medical device creator Penumbra Inc. is exploring a blend with Shockwave Medical Inc., individuals with knowledge of the matter said.  Penumbra has held discussions with Shockwave Medical with regards to a likely restrict, as indicated by individuals, who asked not to be recognized because that the information is private. Shares of Shockwave Medical have taken off almost 900% since the organization opened up to the public in 2019, giving it a market worth of nearly $6 billion. Penumbra was esteemed at about $9.5 billion at the end of New York trading Friday.

Penumbra, based in Alameda, California, makes medical devices and tools that go into the body to help treat conditions like stroke and brain aneurysms. It aims to reach an agreement within a few weeks, though there’s no certainty the discussions will lead to a transaction, the people said.

Shockwave Medical could still opt to remain independent or pursue other options, the people said. Representatives for Shockwave Medical and Penumbra declined to comment.

Founded by serial medical technology entrepreneur Daniel Hawkins, Shockwave Medical says it’s seeking to change how calcified cardiovascular disease is treated. The Santa Clara, California-based company has a device that uses sound waves to break up calcium deposits in arteries and expand vessels, a method the company says is safer than some currently used procedures.

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