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Asensus Surgical (ASXC) Inks a Merger Agreement With KARL STORZ
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Asensus Surgical Inc. (ASXC - Free Report) gets into a definitive merger agreement with KARL STORZ Endoscopy-America, Inc., a wholly owned subsidiary of KARL STORZ SE & Co. KG. The merger agreement states that KARL STORZ will acquire all of the outstanding shares of Asensus Surgical for 35 cents per share in cash.
The merger is expected to maximize Asensus Surgical’s stockholder value. With this transaction, Asensus will have a greater opportunity to advance in safer, predictable surgery and digital tools for patients and surgeons all over the world.
The transaction is unanimously approved by Asensus Surgical’s board of directors.
Financial Details
The purchase price represents approximately 67% premium to the closing price of the ASCX common stock on the NYSE American on Apr 2, 2024 (the date prior to the announcement of a potential transaction). It also represents a premium of approximately 52% to the closing price on the last trading day prior to the date of this announcement.
After the transaction closes, Asensus Surgical will become a subsidiary of KARL STORZ Endoscopy-America. It will no longer be publicly listed or traded on the NYSE American Exchange.
More on the Merger
The transaction is expected to end during the third quarter of 2024, subject to customary closing conditions, including receipt of approval from the Asensus Surgical’s stockholders.
With Asensus Surgical’s innovative robotic and digital technology, KARL STORZ will be able to increase its portfolio and evolve in robotic surgical market, particularly with the development of the next generation LUNA system.
Image Source: Zacks Investment Research
Industry Prospects
Per a report from Root Analysis, the global surgical robots market size is valued at $ 9.1 billion in 2024 and the figure is expected to skyrocket to $22.9 billion by 2035, representing a CAGR of 8.7% during the period. Robotic surgeries offer several benefits like high precision, minimally invasive cuts, reduced scars, enhanced vision and better post-surgical recovery. Due to these advantages, the adoption rate of surgical robots within healthcare is rising.
Given the market potential, the latest buyout is expected to provide a significant impetus to both the entities in agreement.
Other Recent Developments
In April 2024, ASCX announced that Sendai Tokushukai Hospital in Japan has entered into an agreement to lease and utilize a Senhance Surgical System — one of the notable products of Asensus Surgical that make it the only commercially-available robotic surgery system with haptic feedback.
Earlier in February, Asensus Surgical achieved a milestone by completing more than 1000 successful cases at three hospitals utilizing the Senhance Surgical System. This underscores the rising acceptance of the system.
Price Performance
Year to date, shares of ASXC have risen 3.5% compared with theindustry’s 5.5% growth.
Zacks Rank and Key Picks
Asensus Surgical currently carries a Zacks Rank #4 (Sell).
The Inogen stock has surged 32.9 % year to date. In the past 60 days, the bottom-line estimate for 2024 has narrowed from a loss of $2.56 per share to a loss of $2.43 per share.
In the last reported quarter, it posted an earnings surprise of 18.42%.
Estimates for AdaptHealth earnings per share (EPS) have been currently pegged at $1.13 for 2025, indicating an improvement of 1.8% in the past 30 days. Shares of the company have risen 12.2% in the past year against the industry’s 1.8% decline.
AHCO’s earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 49.70%.
Estimates for DexCom’s fiscal 2024 EPS have moved north 1.7% to $1.78 in the past 60 days. Shares of the company have lost 6.6% year to date against the industry’s growth of 5.5%.
DXCM’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 34.10%. In the last reported quarter, it delivered an earnings surprise of 18.52%.
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Asensus Surgical (ASXC) Inks a Merger Agreement With KARL STORZ
Asensus Surgical Inc. (ASXC - Free Report) gets into a definitive merger agreement with KARL STORZ Endoscopy-America, Inc., a wholly owned subsidiary of KARL STORZ SE & Co. KG. The merger agreement states that KARL STORZ will acquire all of the outstanding shares of Asensus Surgical for 35 cents per share in cash.
The merger is expected to maximize Asensus Surgical’s stockholder value. With this transaction, Asensus will have a greater opportunity to advance in safer, predictable surgery and digital tools for patients and surgeons all over the world.
The transaction is unanimously approved by Asensus Surgical’s board of directors.
Financial Details
The purchase price represents approximately 67% premium to the closing price of the ASCX common stock on the NYSE American on Apr 2, 2024 (the date prior to the announcement of a potential transaction). It also represents a premium of approximately 52% to the closing price on the last trading day prior to the date of this announcement.
After the transaction closes, Asensus Surgical will become a subsidiary of KARL STORZ Endoscopy-America. It will no longer be publicly listed or traded on the NYSE American Exchange.
More on the Merger
The transaction is expected to end during the third quarter of 2024, subject to customary closing conditions, including receipt of approval from the Asensus Surgical’s stockholders.
With Asensus Surgical’s innovative robotic and digital technology, KARL STORZ will be able to increase its portfolio and evolve in robotic surgical market, particularly with the development of the next generation LUNA system.
Image Source: Zacks Investment Research
Industry Prospects
Per a report from Root Analysis, the global surgical robots market size is valued at $ 9.1 billion in 2024 and the figure is expected to skyrocket to $22.9 billion by 2035, representing a CAGR of 8.7% during the period. Robotic surgeries offer several benefits like high precision, minimally invasive cuts, reduced scars, enhanced vision and better post-surgical recovery. Due to these advantages, the adoption rate of surgical robots within healthcare is rising.
Given the market potential, the latest buyout is expected to provide a significant impetus to both the entities in agreement.
Other Recent Developments
In April 2024, ASCX announced that Sendai Tokushukai Hospital in Japan has entered into an agreement to lease and utilize a Senhance Surgical System — one of the notable products of Asensus Surgical that make it the only commercially-available robotic surgery system with haptic feedback.
Earlier in February, Asensus Surgical achieved a milestone by completing more than 1000 successful cases at three hospitals utilizing the Senhance Surgical System. This underscores the rising acceptance of the system.
Price Performance
Year to date, shares of ASXC have risen 3.5% compared with the industry’s 5.5% growth.
Zacks Rank and Key Picks
Asensus Surgical currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are Inogen, Inc. (INGN - Free Report) , AdaptHealth Corp. (AHCO - Free Report) and DexCom, Inc. (DXCM - Free Report) . While Inogen and AdaptHealth currently carries a Zacks Rank #2 (Buy) each, DexCom hold a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Inogen stock has surged 32.9 % year to date. In the past 60 days, the bottom-line estimate for 2024 has narrowed from a loss of $2.56 per share to a loss of $2.43 per share.
In the last reported quarter, it posted an earnings surprise of 18.42%.
Estimates for AdaptHealth earnings per share (EPS) have been currently pegged at $1.13 for 2025, indicating an improvement of 1.8% in the past 30 days. Shares of the company have risen 12.2% in the past year against the industry’s 1.8% decline.
AHCO’s earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 49.70%.
Estimates for DexCom’s fiscal 2024 EPS have moved north 1.7% to $1.78 in the past 60 days. Shares of the company have lost 6.6% year to date against the industry’s growth of 5.5%.
DXCM’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 34.10%. In the last reported quarter, it delivered an earnings surprise of 18.52%.