SWAV Stock Tumbles As Boston Scientific Takeover Talk Reportedly Breaks Down

The rumored matchup between Boston Scientific (BSX) and Shockwave Medical (SWAV) reportedly broke down on Monday, leading SWAV stock into a dive.

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StreetInsider reported the new development, citing an insider who said the companies couldn’t agree on a price. Boston Scientific offered to pay $275 per share of Shockwave stock. But shares hit a recent high at 300 in late April.

Representatives of the two companies declined to comment to Investor’s Business Daily.

In morning trades on today’s stock market, SWAV stock tumbled 6.3% near 270. Boston Scientific stock jumped 2.9% near 53.

SWAV Stock: Bullish Growth Expected

The potential deal could bolster Boston Scientific’s cardiovascular portfolio. Shockwave’s technology uses electrical impulses to “crack” hardened calcium in the arteries. The process called intravascular lithotripsy is an alternative to atherectomy, which uses a small drill to remove calcifications.

Needham analyst Mike Matson noted in a recent report that the intravascular lithotripsy market is worth about $8.5 billion. This implies just 6% of the market was penetrated last year.

The news comes amid bullish growth for Shockwave. Late Monday, analysts expect the company to report first-quarter earnings of 79 cents per share, minus some items. Earnings would balloon 103%. Sales are also expected to rocket 57% to $147.3 million.

For the year, SWAV stock analysts call for Shockwave earnings of $3.72 per share and $671.5 million in revenue. Earnings would topple 35% while sales would surge 37%.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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