Shockwave Medical bolsters medical device portfolio with acquisition of Neovasc.
Courtesy of Getty Images
Tuesday, Shockwave Medical agreed to acquire Neovasc in a binding agreement for approximately $100 million.
Neovasc has the potential to receive deferred payments of up to $47 million after the completion of the transaction for the achievement of future regulatory milestones. These regulatory milestones hinge on the success of Neovasc’s proprietary medical technology named Reducer.
Fred Colen, Neovasc’s president and CEO, stated in the announcement he is ready to “accelerate Reducer adoption globally” as a part of Shockwave.
Addressing Refractory Angina
Reducer addresses refractory angina, a cardiovascular condition that affects millions of patients worldwide. The technology previously received FDA Breakthrough Device designation in 2018 and is being tested in a clinical trial to collect data for an approval decision.
Under the terms of the agreement, Shockwave will pay Neovasc a maximum of $47 million if Reducer receives final FDA premarket approval in the U.S. for the treatment of angina by the end of June 2026. The value paid to Neovasc for its medical technology will depreciate if it takes longer to reach FDA approval.
Reducer is a small device that is implanted into the coronary sinus of patients. Reducer creates back pressure in the large vessel of the sinus that increases the flow of blood to the heart, which can reduce chest pain.
The device has been approved for the treatment of refractory angina in the EU since 2015.
Neovasc last shared updates of its clinical trial of Reducer in Nov 2022, stating that 55 patients had been enrolled across 17 active sites in North America. A total of 380 patients are anticipated to take part in the trial with Neovasc utilizing machine learning techniques to locate healthcare providers that treat patients with refractory angina.
