Why Neovasc (NVCN) Shares Are Jumping Today

Shockwave Medical Inc SWAV has agreed to acquire Neovasc Inc NVCN for an upfront cash payment of $27.25 per share, corresponding to an enterprise value of approximately $100 million.
The upfront cash consideration represents a 27% and 68% premium to the closing price and 30-day VWAP, respectively, of Neovasc's common shares on Jan. 13, 2023.
Neovasc shareholders will also receive a potential deferred payment in the form of a non-tradable contingent value right (CVR), entitling the holder to receive up to an additional $12 per share in cash if certain regulatory milestones are achieved.
Shockwave expects to complete the transaction in the first half of 2023.
Neovasc's Innovative Reducer System will target the estimated $5 billion refractory angina market.
The Neovasc Reducer System has been granted Breakthrough Device designation by the FDA, is approved in the European Union, and is currently enrolling patients in the COSIRA-II study to support FDA approval for coronary obstructive refractory angina.
Concurrently, Shockwave Medical reported interim Q4 FY22 sales of $143-$144 million, up 70%-71%. Q4 FY22 U.S. Coronary revenue is expected to be $81-$82 million.
Interim sales for FY22 are anticipated to be $489-$490 million, up 106%-107%.
Shockwave Medical projects FY23 revenue of $660-$680 million, up approximately 35%-39% Y/Y.
Price Action: SWAV shares are down 9.37% at $183.00, and NVCN shares are up 31.75% at $28.38 during the premarket session on the last check Tuesday.

Shockwave Medical Seeks To Bolster Its Cardiovascular Disease Portfolio With Neovasc Acquisition