雅虎香港財經 Boston Scientific (BSX) to Buy Silk Road, Boost Cardiology
Boston Scientific BSX has announced plans to acquire carotid artery device specialist Silk Road Medical for approximately $1.26 billion. This is a strategic move poised to significantly expand the company’s cardiology portfolio.
By paying $27.50 per share, Boston Scientific is offering a 38% premium over Silk Road's volume-weighted average share price over the past 60 days. With this transaction, expected to close in the second half of 2024, Silk Road will become a wholly owned subsidiary of the MedTech giant.
Enhancing Market Position
Silk Road Medical, known for its Transcarotid Artery Revascularisation (TCAR) devices, has completed over 85,000 TCAR procedures to date. The TCAR system is a minimally invasive procedure designed to treat carotid artery disease by temporarily reversing blood flow to prevent plaque fragments from reaching the brain.
Silk Road Medical has a market capitalization of $854.7 million and a 9.4% share in the global carotid and renal artery stent market. The company reported strong earnings in 2023. Revenues increased by 28% from 2022, driven by the growing adoption of TCAR procedures.
With this acquisition, Boston Scientific aims to leverage Silk Road’s innovative technology to bolster its market share in both North America and Europe. This acquisition is expected to enhance Boston Scientific’s market position and revenue streams in these regions.
Strengthening Cardiology Offerings
With this acquisition, Boston Scientific is set to integrate Silk Road Medical’s TCAR platform, which offers reduced stroke risk, lower cranial nerve injury and shorter hospital stays compared to traditional carotid stenosis treatments. Silk Road’s product line consists of its ENROUTE range, including a neuroprotective system, stent system and balloon dilatation catheter. It complements Boston Scientific’s existing offerings and promises to drive further innovation in stroke prevention and carotid artery disease treatment.
The addition of Silk Road Medical will enhance Boston Scientific’s cardiology division, which has seen substantial growth since 2021. David Beauchamp, a medical analyst at GlobalData, in this regard, emphasized that this acquisition will preserve Boston Scientific's momentum in cardiology and contribute to continued growth.
Image Source: Zacks Investment Research
Market Prospects
Going by a Grand View Research report, the global carotid artery stents market, valued at $559.7 million in 2021, is projected to witness a CAGR of 3% from 2022 to 2030. This growth is likely to be driven by the rising prevalence of cardiovascular diseases, technological advancements in stent design and an aging global population. Key players are innovating with drug-eluting and biodegradable stents, enhancing market potential. Increasing awareness and improved diagnostic and treatment capabilities will further propel market expansion.
Other Value-Added Acquisitions by BSX
We are impressed with Boston Scientific’s recent acquisitions that have added numerous products (though many are under development) with immense potential. These, in turn, should help boost the top line in the long term.
In March 2024, the company acquired the Endoluminal Vacuum Therapy portfolio from B. Braun. In December 2023, Boston Scientific initiated the acquisition of Axonics, a medical technology company that offers innovative devices to treat urinary and bowel dysfunction. With this $3.7-billion acquisition, the company expects to expand its differentiated technologies portfolio within Urology.
In late 2023, the company acquired Relievant Medsystems, the developer of the FDA-approved Intracept Intraosseous Nerve Ablation System. This business is expected to expand the company’s Neuromodulation portfolio.
Share Price Performance
Over the past year, shares of BSX have skyrocketed 41.2% against the industry’s 2.3% dip.
Zacks Rank and Other Key Picks
Boston Scientific carries a Zacks Rank #2 (Buy) currently.
Some other top-ranked stocks in the broader medical space are Hims & Hers Health HIMS, Medpace MEDP and ResMed RMD. While Hims & Hers Health sports a Zacks Rank #1 (Strong Buy), Medpace and ResMed carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks Rank #1 stocks here.
Hims & Hers Heath stock has surged 196.9% in the past year. Estimates for the company’s earnings have moved from 18 cents to 19 cents for 2024 but remained constant at 33 cents for 2025 in the past seven days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it delivered an earnings surprise of a staggering 150%.
Estimates for Medpace’s 2024 earnings per share have remained constant at $11.29 in the past 30 days. Shares of the company have surged 78.9% in the past year compared with the industry’s 5.9% growth.
MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.8%. In the last reported quarter, it delivered an earnings surprise of 30.6%.
Estimates for ResMed’s fiscal 2024 earnings per share have remained constant at $7.70 in the past 30 days. Shares of the company have declined 2.1% in the past year compared with the industry’s fall of 2.3%.
RMD’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.8%. In the last reported quarter, it delivered an earnings surprise of 10.9%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
ResMed Inc. (RMD) : Free Stock Analysis Report
Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report
Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report
