Boston Scientific Corporation (NYSE: NYSE:BSX) and Axonics, Inc. have received a request for additional information from the U.S. Federal Trade Commission (FTC) about their planned merger, the companies disclosed Tuesday. This request, known as the Second Request, pertains to the FTC's ongoing review of the merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act).
The Second Request was issued on April 3, 2024, and has the effect of extending the waiting period imposed by the HSR Act. This period will now last for 30 days after both Boston Scientific and Axonics have complied with the FTC's request unless the FTC terminates the waiting period sooner or the parties voluntarily extend it.
Boston Scientific, a leading manufacturer of medical devices, had previously announced on January 8, 2024, its plans to acquire Axonics through a merger agreement. Axonics would survive as a wholly owned subsidiary of Boston Scientific post-merger. The completion of the merger, however, is contingent upon several conditions, including the end of the waiting period under the HSR Act and the fulfillment or waiver of other customary closing conditions.
In response to the Second Request, both companies intend to promptly comply and continue cooperating with the FTC. Despite this regulatory hurdle, Boston Scientific and Axonics anticipate that the merger will be finalized in the second half of 2024.
The FTC's Second Request indicates a more in-depth review of the merger to ensure compliance with antitrust laws and to prevent any anti-competitive outcomes that may result from the acquisition. The outcome of this review will be crucial for the merger to proceed as planned.
The information stated in this article is based on a press release statement.
InvestingPro Insights
As Boston Scientific Corporation (NYSE: BSX) navigates through the regulatory process of its planned merger with Axonics, Inc., investors are keeping a close eye on the company's financial health and market position. According to the latest data from InvestingPro, Boston Scientific boasts a robust market capitalization of $100.14 billion and has demonstrated strong revenue growth, with the last twelve months as of Q4 2023 showing a 12.29% increase, reaching $14.24 billion USD.
Despite the scrutiny from the FTC, Boston Scientific's financial metrics provide a glimpse into its operational success. The company's gross profit margin stands at an impressive 69.16% for the same period, indicating efficient management and a strong competitive edge in the Healthcare Equipment & Supplies industry. Additionally, the company has experienced a significant price uptick over the last six months, with a 32.16% total return, reflecting investor confidence and a positive market response.
InvestingPro Tips highlight that Boston Scientific is expected to see net income growth this year and is trading at a low P/E ratio relative to near-term earnings growth, suggesting that it may be undervalued compared to its future earnings potential. Moreover, with a PEG ratio of just 0.46 as of Q4 2023, the company's stock could be attractive to investors looking for growth at a reasonable price.
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