Shockwave Medical (NASDAQ:SWAV) is a Santa Clara-based medical device company that is engaged in the development and commercialization of intravascular lithotripsy (IVL) technology for the treatment of calcified plaque in patients with peripheral and coronary vascular, and heart valve diseases in the United States and around the world. Shares of Shockwave Medical have shot up 13% week-over-week as of late morning trading on Wednesday, March 27. What is behind this recent price action? Let’s jump in.
On Tuesday, March 26, the Wall Street Journal reported that Johnson & Johnson was in talks to buy the medical device maker. Johnson & Johnson has sought to expand its presence in cardiovascular devices, considering the potential in this space.
A recent report from Grand View Research estimated that the global cardiovascular devices market was valued at US$48.5 billion in 2022. The same report projected that this industry was anticipated to grow at a compound annual growth rate (CAGR) of 7.1% from 2023 through to 2030. Cardiovascular devices play a crucial role in detecting and mitigating heart disease, the leading cause of death worldwide.
Shockwave Medical released its fourth quarter (Q4) and full year 2023 results on February 15, 2024. The company recognized revenue of $203 million in Q4 2023 and $730 million for the full year. That represented increases of 41% and 49%, respectively, compared to the same period in fiscal 2022. Shockwave also initiated the full U.S. commercial launch of the Shockwave C2+ Coronary Intravascular Lithotripsy (IVL) catheter.
