Shockwave Medical shares are trading more than 3% higher in Wednesday’s session, having soared more than 10% since it was announced Johnson & Johnson (NYSE:JNJ) was considering buying it.
The maker of medical devices to treat heart diseases was reported to be an acquisition target for the healthcare giant on Tuesday by the Wall Street Journal.
A deal could be completed as soon as the next few weeks should talks continue positively and another bidder does not emerge.
While an exact valuation of the deal wasn't provided, Shockwave currently has a market value of more than US$12 billion.
Johnson and Johnson's interest comes around a year after Shockwave Medical became a takeover target for Boston Scientific, however, a deal never happened.
Shockwave’s core business involves producing a medical device which uses shockwaves to break down calcified plaque in heart vessels, a similar process that is used to treat kidney stones.
J&J has been looking for companies which it can acquire to help strengthen its cardiovascular product portfolio but said any deals would be small “tuck-in” acquisitions.