MARLBOROUGH, Mass. - Boston Scientific Corporation (NYSE:BSX) has completed its acquisition of Silk Road Medical, Inc. (Nasdaq: NASDAQ:SILK), a company known for its innovative transcarotid artery revascularization (TCAR) procedure, a minimally invasive technique aimed at preventing strokes and treating carotid artery disease. Announced today, the acquisition deal closed at $27.50 per share, valuing Silk Road Medical at approximately $1.18 billion.
The transaction is expected to have a negligible impact on Boston Scientific's adjusted earnings per share in 2024 and 2025, with accretive effects anticipated in subsequent years. The company noted that the impact on GAAP earnings per share would be less accretive or potentially dilutive due to amortization expenses and acquisition-related charges.
Cat Jennings, president of Vascular, Peripheral Interventions at Boston Scientific, stated that the acquisition allows the company to expand its vascular technology offerings by integrating the TCAR platform into its portfolio. This move is expected to bring the benefits of TCAR to more physicians and patients through Boston Scientific's extensive commercial network.
Boston Scientific, a global leader in medical technology for over 45 years, emphasizes that the addition of TCAR technology aligns with its mission to enhance patient health by providing a broad range of high-performance solutions that address unmet patient needs and reduce healthcare costs.
The acquisition is part of Boston Scientific's strategy to strengthen its position in the medical device market. The company's portfolio includes devices and therapies designed to diagnose and treat a variety of complex diseases across cardiovascular, respiratory, digestive, oncological, neurological, and urological areas.
This news is based on a press release statement and is intended to provide information on the financial and business impact of the acquisition, as well as the anticipated benefits of integrating TCAR technology into Boston Scientific's product lineup.
"In other recent news, Boston Scientific Corporation has reported considerable increases in revenue and adjusted earnings per share (EPS) for the second quarter, surpassing expectations. This was attributed in part to the successful U.S. launch of Farapulse, which notably contributed to the quarter's revenue. Following these strong results, Boston Scientific uplifted its full-year 2024 guidance, projecting growth in the range of 13.5% to 14.5%.
Analyst firms, including Baird, Canaccord Genuity, and Deutsche Bank (ETR:DBKGn), have responded favorably to these developments, adjusting their price targets for Boston Scientific upward. They highlighted the company's operational efficiency gains and focus on mergers and acquisitions as positive factors for growth.
In addition to Farapulse, the company is preparing for the launches of the FARAVIEW software module and FARAWAVE Nav-enabled catheter in the latter half of the year. Furthermore, Boston Scientific recently received approval from the U.S. Food and Drug Administration (FDA) to expand the use of its INGEVITY+ Pacing Leads for conduction system pacing (CSP (LON:CSPC)) and sensing in the left bundle branch area (LBBA). This approval marks a significant extension of the device's capabilities. These are some of the recent developments at Boston Scientific."
InvestingPro Insights
As Boston Scientific Corporation (NYSE:BSX) finalizes its acquisition of Silk Road Medical, Inc., the financial landscape of the company presents a mix of promising forecasts and market performance metrics. According to InvestingPro data, Boston Scientific currently boasts a robust market capitalization of $122.98 billion, reflecting its substantial presence in the medical technology sector. The company's revenue growth has been impressive over the last twelve months as of Q2 2024, with a notable increase of 13.65%, and a quarterly revenue growth in Q2 2024 of 14.48%, suggesting a positive trajectory following strategic expansions such as the Silk Road Medical acquisition.
InvestingPro Tips indicate that analysts have a positive outlook on the company's financial future. With 24 analysts revising their earnings upwards for the upcoming period, this consensus could signal confidence in Boston Scientific's operational performance and market strategy. Additionally, the company's net income is expected to grow this year, which aligns with the potential for accretive effects on earnings per share in the years following the acquisition of Silk Road Medical.
It's also worth noting that Boston Scientific is trading at a high Price / Book multiple of 6.04 as of Q2 2024, which can be indicative of the market's valuation of the company's assets relative to its share price. While some may view this as a sign of the stock's premium pricing, it is also a testament to the company's perceived value and growth prospects in the eyes of investors.
For investors seeking more comprehensive analyses and forecasts, additional InvestingPro Tips are available, providing deeper insights into Boston Scientific's performance and potential. With a total of 19 additional tips listed on InvestingPro, users can access a wealth of information to inform their investment decisions. To explore these insights, interested parties are encouraged to visit the dedicated InvestingPro page for Boston Scientific at https://www.investing.com/pro/BSX.
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