Penumbra Explores Combination With Shockwave Medical

(Bloomberg) -- Medical device maker Penumbra Inc. is exploring a combination with Shockwave Medical Inc., people with knowledge of the matter said. 

Penumbra has held talks with Shockwave Medical about a potential tie-up, according to the people, who asked not to be identified because the information is private. 

Shares of Shockwave Medical have soared nearly 900% since the company went public in 2019, giving it a market value of almost $6 billion. Penumbra was valued at about $9.5 billion at the close of New York trading Friday. 

Bloomberg News reported earlier that Shockwave Medical was working with an adviser to study a merger or partnership with another health-care firm after receiving takeover interest. Any transaction would extend a dealmaking boom in the sector, with companies pairing up to build scale and diversify as the medical industry grapples with an aging population and the coronavirus pandemic.

Penumbra, based in Alameda, California, makes medical devices and tools that go into the body to help treat conditions like stroke and brain aneurysms. It was aiming to reach an agreement within a few weeks, though there was no certainty the discussions would lead to a transaction, the people said.

“Penumbra is not in discussions with Shockwave Medical to pursue a business combination or similar transaction,” Penumbra said in an emailed statement Sunday. 

Shockwave Medical could still opt to remain independent or pursue other options, the people said. A representative for the company declined to comment.

Founded by serial medical technology entrepreneur Daniel Hawkins, Shockwave Medical says it’s seeking to change how calcified cardiovascular disease is treated. The Santa Clara, California-based company has a device that uses sound waves to break up calcium deposits in arteries and expand vessels, a method the company says is safer than some currently used procedures.

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