Neovasc, which is valued at around $100m by the transaction, has developed a technology called Neovasc Reducer System for addressing refractory angina, a chronic condition for which conventional therapies cannot control the chest pain suffered by patients
Shockwave Medical, a US-based cardiovascular medical device company, has signed an agreement to acquire Neovasc, a speciality medical device company focused on the minimally invasive treatment of refractory angina.
As per the terms of the deal Shockwave Medical will acquire all the shares of Neovasc for $27.25 per share in cash. This corresponds to an enterprise value of around $100m, which includes certain deal-related costs.
Neovasc is listed on the Nasdaq and the Toronto Stock Exchange.
The company’s shareholders will also possibly get a deferred payment worth around $47m or $12 per share in cash in the form of a non-tradable contingent value right (CVR). This will be subject to the achievement of certain regulatory milestones.
Neovasc has developed a technology called Neovasc Reducer System for addressing refractory angina, a chronic condition for which conventional therapies cannot control the chest pain suffered by patients.
The Neovasc Reducer System has the US Food and Drug Administration (FDA) breakthrough device designation. It is also CE-marked and is presently enrolling patients in the COSIRA-II clinical trial.
COSIRA-II is being carried out under an investigation device exemption (IDE) to seek FDA approval for using the technology in patients having coronary obstructive refractory angina.
Shockwave Medical president and CEO Doug Godshall said: “We believe the Reducer is an excellent fit for Shockwave as it enables us to apply our capabilities to address another large, unmet need within cardiology – refractory angina.
“The timing is ideal as there will be no distraction to our U.S. sales organization in the near term and, as we did with C2, our coronary device, we expect to refine our commercialization approach and begin the development of international markets in advance of U.S. approval.
“This transaction supports our commitment to drive growth through innovation and we are excited for the potential to bring even more solutions to our customers and the patients they serve with the Reducer System.”
The deal, which is subject to Neovasc shareholder approval and other customary conditions, is expected to close in the first half of this year.