Report: St. Jude Medical in talks to acquire Thoratec

St. Jude Medical (NYSE:STJ) is reportedly in talks to acquire Thoratec (NSDQ:THOR), according to “people familiar with the situation.”

Although the 2 companies are in ongoing discussions, no final deal has been agreed and the negotiations may still fall apart, the sources told Bloomberg. Thoratec could also opt to seek a different buyer, 1 of the people said.

THOR shares rose 19% to an all-time high of $57.98 in mid-day activity today, putting Thoratec’s valuation at more than $3 billion. The shares have climbed more than 74% this year amid new product developments and speculation the company could be an acquisition target. St. Jude rose 0.4%, giving it a market capitalization of $22 billion.

Shares of HeartWare International (NSDQ:HTWR), Thoratec’s main rival in the cardiac assist device market, also surged today, climbing 7.6% to $85.21 apiece.

The left ventricular assist devices made by Thoratec and HeartWare help patients in need of heart transplants survive until a donor organ is available. The devices are attached to the left ventricle, the heart’s main pumping chamber. A tube runs around the heart and connects to the aorta, which funnels oxygen-rich blood to the rest of the body. A small electric motor ensures the blood is continuously moving between the 2. Former U.S. Vice President Dick Cheney received a Thoratec HeartMate II implant in 2012.

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