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Boston Scientific to acquire Intera Oncology

Published 11/25/2024, 07:09 AM
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MARLBOROUGH, Mass. - Boston Scientific Corporation (NYSE: NYSE:BSX) today announced a definitive agreement to acquire Intera Oncology Inc., a company specializing in liver cancer treatment devices and medication. This move aims to enhance Boston Scientific's interventional oncology portfolio by adding the Intera 3000 Hepatic Artery Infusion Pump and the chemotherapy drug floxuridine, both approved by the U.S. Food and Drug Administration.

The Intera 3000 pump, currently the only constant flow implantable pump for hepatic artery infusion (HAI) therapy approved in the United States, delivers chemotherapy directly to the liver, targeting tumors primarily caused by metastatic colorectal cancer. With approximately 1.4 million people in the U.S. living with primary colorectal cancer and over 150,000 new cases diagnosed annually, nearly a quarter of these patients will experience liver metastases during their illness.

Peter Pattison, president of Interventional Oncology and Embolization at Boston Scientific, stated that the acquisition is part of the company's commitment to providing effective treatments for liver cancer with minimal systemic side effects. Clinical trials have demonstrated the benefits of HAI therapy, including improved tumor response and survival rates, when compared to systemic chemotherapy. These findings support the potential of HAI therapy to improve outcomes for patients with unresectable colorectal metastases to the liver.

Boston Scientific expects to finalize the acquisition in the first half of 2025, subject to closing conditions. The financial terms of the transaction have not been disclosed, but the company anticipates that it will not significantly impact adjusted earnings per share in 2025, although it may be more dilutive on a GAAP basis due to acquisition-related charges and amortization expenses.

This expansion aligns with Boston Scientific's broader mission to improve patient health through advanced medical technologies, addressing complex diseases across various medical fields. The information provided is based on a press release statement from Boston Scientific Corporation.

In other recent news, Boston Scientific Corporation has announced the approval of its 2025 Annual Bonus Plan and the adoption of two new performance share programs. The company has also resumed its AVANT GUARD clinical trial, focusing on a new treatment option for patients with persistent atrial fibrillation. In addition, Boston Scientific plans to acquire Cortex, a private firm with a unique cardiac mapping system, OptiMap. This move has been positively received by analysts at TD Cowen, who maintain a Buy rating on Boston Scientific.

Boston Scientific's cardiology business has reported strong growth rates, with a 27% increase in the U.S. and 18% internationally, driven by performances in the ICTx and EP business sectors, and the WATCHMAN franchise. Recent product approvals include the FARAVIEW mapping software and FARAWAVE NAV catheter. Despite the ACURATE IDE trial not meeting its primary endpoint, the ACURATE platform has shown a 20% revenue growth in EMEA, surpassing $200 million.

These recent developments highlight Boston Scientific's commitment to innovation and growth in the cardiology market. The company is also investing in mitral and tricuspid therapies, aiming to double the global drug-coated balloon business by 2025. These facts paint a picture of a company that is actively pursuing growth and innovation in its industry.

InvestingPro Insights

Boston Scientific's acquisition of Intera Oncology aligns well with the company's strong market position and growth trajectory. According to InvestingPro data, Boston Scientific boasts a substantial market capitalization of $132.64 billion, reflecting its significant presence in the healthcare equipment and supplies industry.

The company's revenue growth is particularly noteworthy, with a 15.66% increase over the last twelve months and an impressive 19.34% growth in the most recent quarter. This robust revenue expansion supports Boston Scientific's strategy of portfolio enhancement through acquisitions like Intera Oncology.

InvestingPro Tips highlight that Boston Scientific is expected to see net income growth this year, and 20 analysts have revised their earnings upwards for the upcoming period. These positive indicators suggest that the market anticipates continued success from the company's growth initiatives, including strategic acquisitions.

It's worth noting that Boston Scientific trades at a high P/E ratio of 73.52, which may reflect investor optimism about future earnings potential from innovations and acquisitions in the oncology space. The company's strong gross profit margin of 68.74% also indicates efficient operations and pricing power, which could be further enhanced by integrating Intera's specialized products.

For investors seeking more comprehensive analysis, InvestingPro offers 17 additional tips for Boston Scientific, providing deeper insights into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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