Boston Scientific shares rise on Bolt Medical acquisition

Investing.com -- Shares of Boston Scientific Corporation (NYSE:BSX ) climbed 4.6% following the announcement that the company has agreed to acquire Bolt Medical (TASE:PMCN ), a developer of an innovative laser-based platform for treating artery disease. The acquisition, which is expected to close in the first half of 2025, aligns with Boston Scientific's strategic investments in cardiovascular technologies and marks its entry into the intravascular lithotripsy (IVL) market.

Boston Scientific's move to acquire Bolt Medical is seen as a strategic expansion of its cardiovascular product portfolio. Bolt Medical's IVL system, which is currently under investigation, utilizes acoustic pressure waves to fracture calcium within arterial lesions, offering a minimally invasive treatment option for patients with complex calcified arterial disease. This technology complements Boston Scientific's existing interventional cardiology therapies and is anticipated to address a significant unmet need in the treatment of coronary and peripheral artery disease.

The terms of the deal include an upfront payment of approximately $443 million for the remaining 74% stake in Bolt Medical not already owned by Boston Scientific, with an additional up to $221 million contingent on regulatory milestones. The company has been a strategic investor in Bolt Medical since 2019, holding a 26% equity stake, which will lead to a one-time gain recognized at the closing of the transaction.

While Boston Scientific expects the acquisition to be slightly dilutive to its adjusted earnings per share (EPS) in 2025, they anticipate offsetting this through internal cost efficiencies. On a generally accepted accounting principles (GAAP) basis, the transaction is predicted to be more dilutive, primarily due to amortization expenses and acquisition-related charges.

Analysts have reacted positively to the news, with BTIG analyst Marie Thibault reiterating a Buy rating and a $101.00 price target on Boston Scientific. Thibault commented, "We think this is the right move for BSX and continue to see the company as forward-thinking on innovation across its Cardiovascular portfolio." The acquisition is seen as a forward-looking step that could position Boston Scientific competitively in a high-growth market segment and enhance its cardiovascular offerings.

Boston Scientific's commitment to innovation and strategic growth is underscored by this acquisition, as well as by its ongoing research and development efforts in other areas of cardiovascular medicine. With the transaction set to complete in the coming years, Boston Scientific aims to further solidify its position as a leader in medical devices for cardiovascular care.

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Source: Investing.com