Penumbra Inc. is exploring the possibility of tying up with Shockwave Medical as per people knowing the matter and who asked not to be identified as the information isn’t public yet.
The Alameda, California-based company has held talks with Shockwave Medical Inc., whose market capitalization is close to $ 6 billion. Shockwave Medical Inc. went public in 2019 and has risen almost 900% since then. On the other hand, Penumbra has a market value of around $ 9.5 billion after Trading in New York Friday.
As earlier reported by Bloomberg News, Shockwave Medical Inc. is working with an advisor on partnering with another health care company after it received a takeover interest. Such a transaction would extend deal-making booms in this sector as more companies are merging to diversify and build scale as they struggle to deal with aging populations and coronavirus pandemic.
Penumbra Inc makes medical tools and devices used in the patient’s body to treat brain aneurysms and stroke. As per people, the company aims to reach an agreement with shockwave though there is no certainty as yet whether the discussions would lead to the conclusion of the deal.
In an emailed statement Sunday, Penumbra said that they were not discussing with shockwave to pursue combining business or any other similar transaction.
According to sources, Shockwave can pursue to deal with others or remain independent. A representative of Shockwave declined to comment on the matter.
Shockwave Medical was founded by Daniel Hawkins, a serial entrepreneur of medical technology. It is looking for new treatment methods for calcified heart disease. The California-based company is making a device that uses sound waves to break calcium deposits in arteries and makes the heart vessels expand. According to the company, this method is safer than the currently used procedures.
