MARLBOROUGH, Mass. - Boston Scientific Corporation (NYSE: NYSE:BSX), a prominent player in the Healthcare Equipment & Supplies industry with a market capitalization of $135.6 billion, announced today that it has agreed to acquire Bolt Medical (TASE:PMCN), Inc., a company specializing in an advanced laser-based platform for treating coronary and peripheral artery disease. According to InvestingPro data, Boston Scientific has demonstrated strong financial health with robust revenue growth of 15.66% over the last twelve months. The acquisition is part of Boston Scientific's strategy to enhance its cardiovascular product offerings with the addition of Bolt Medical's intravascular lithotripsy (IVL) technology.
The IVL system developed by Bolt Medical uses acoustic pressure waves to fracture calcium deposits in arteries, a common factor in cardiovascular diseases, which are the leading cause of death globally. Bolt Medical's technology aims to provide a minimally invasive option for patients with complex calcified arterial disease.
Boston Scientific, which helped establish Bolt Medical in 2019 and holds a 26 percent equity stake in the company, will acquire the remaining 74 percent stake with an upfront payment of approximately $443 million. Additional payments of up to $221 million are contingent upon achieving certain regulatory milestones. The total transaction price, before considering Boston Scientific's current equity ownership and other adjustments, amounts to $600 million upfront and up to $300 million for regulatory milestones.
The acquisition includes the Bolt IVL™ Above the Knee (ATK) and Below the Knee (BTK) systems, which have recently completed pivotal clinical trials. These trials' results will support regulatory submissions for U.S. Food and Drug Administration (FDA) and CE Mark approvals. FDA approval has already been granted to commence the global FRACTURE IDE clinical trial for the Bolt IVL™ Coronary System.
Boston Scientific anticipates that the transaction will close in the first half of 2025, pending customary closing conditions. The acquisition is expected to be slightly dilutive to Boston Scientific's adjusted earnings per share (EPS) in 2025, with dilution to be offset by internal cost efficiencies. The company's strong financial position, with moderate debt levels and sufficient cash flows to cover interest payments, supports its acquisition strategy. InvestingPro analysis indicates the stock is currently trading near its 52-week high, with an impressive 57.46% return over the past year. For deeper insights into Boston Scientific's valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US equities with detailed analysis and actionable intelligence. On a GAAP basis, it is expected to be more dilutive due to amortization expense and acquisition-related charges, although a one-time gain will be recognized at closing related to the company's pre-existing stake in Bolt Medical.
The Bolt IVL™ system is currently considered an investigational device and is not yet cleared for commercial distribution in any country. This transaction is based on a press release statement and is subject to the completion of the proposed acquisition and the satisfaction of regulatory conditions.
In other recent news, Boston Scientific has seen a price target increase from $100 to $110 by Truist Securities, which also maintained a Buy rating on the stock. The medical device giant's robust revenue growth of 15.66% in the last twelve months and recent strategic acquisitions, such as Axonics and Intera Oncology Inc., have contributed to this positive outlook. Similarly, Insulet (NASDAQ:PODD) Corporation's stock has also been given a Buy rating by BTIG, with a price target increase from $270 to $300. This decision was influenced by anticipated U.S. sales growth of the Omnipod insulin management system and an expected annual improvement of 120 basis points in the EBIT margin for 2025 and 2026.
In the Medical Supplies & Devices sector, RBC Capital Markets projected a favorable outlook for 2025, highlighting Boston Scientific and Insulet Corporation as leaders in their respective fields. Analysts from Piper Sandler also expressed optimism for healthcare companies, including Procept BioRobotics, which reported a robust revenue growth of 66% in the third quarter and initiated a public offering of common stock valued at $175 million. These developments are expected to attract investor interest and contribute to the continued growth and potential of these companies.
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