Shockwave Medical has signed a definitive agreement to buy all outstanding shares of Neovasc, a speciality medical device company.
Under the deal terms, the company will pay $27.25 per share in cash upfront on completion of the transaction.
This corresponds to an enterprise value of approximately $100m and includes certain deal-related costs.
Neovasc shareholders will also receive a deferred payment worth up to $12 per share in cash in the form of a non-tradable contingent value right (CVR) on the achievement of certain regulatory milestones.
Neovasc develops, manufactures and commercialises products for the rapidly growing cardiovascular market.
The company’s Reducer System has been designed to address refractory angina, a chronic condition that involves chest pain that cannot be treated with conventional therapies.
The US Food and Drug Administration (FDA) has granted breakthrough device designation to the system.
The device is also CE-marked, and the company is currently enrolling participants in the COSIRA-II clinical trial.
The COSIRA-II randomised clinical trial is being carried out under an investigational device exemption to seek FDA approval for use of the system in patients with coronary obstructive refractory angina.
Shockwave Medical CEO and president Doug Godshall said: “We believe the Reducer is an excellent fit for Shockwave as it enables us to apply our capabilities to address another large, unmet need within cardiology – refractory angina.
“The timing is ideal as there will be no distraction to our US sales organisation in the near term and, as we did with C2, our coronary device, we expect to refine our commercialisation approach and begin the development of international markets in advance of US approval.
“This transaction supports our commitment to drive growth through innovation and we are excited for the potential to bring even more solutions to our customers and the patients they serve with the Reducer System.”
Subject to customary closing conditions, which include Neovasc shareholder approval, the transaction is anticipated to conclude in the first half of the year.