Johnson & Johnson (NYSE:JNJ) is reportedly looking to acquire Shockwave Medical (NASDAQ:SWAV) in a deal that will possibly be finalized in the next few weeks, according to sources cited by The Wall Street Journal on Wednesday
Following the report, JNJ stock is trading down 0.15% while Shockwave Medical is up 12.49%.
With a market cap off $11.78 billion, Shockwave Medical shares have gone up around 50% this year. Moreover, the last few months have seen the stock receive several upgrades and price target raises from analysts citing growth potential and market opportunity.
The launch of the Javelin Catheter by the company to treat patients with PAD for instance prompted BofA to raise its price target and reiterate a Buy rating on the stock last week.
The company, headed by CEO Doug Godshall, has guided for 2024 revenue of $910 million - $930M.
Johnson & Johnson recently acquired Abiomed for $16.6 billion, and the expected deal with SWAV would be another example of the trend towards consolidation in the healthcare sector.