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Boston Scientific (BSX), Silk Road Merger Delayed for Review
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Boston Scientific (BSX - Free Report) recently elected to voluntarily withdraw and refile its Premerger Notification and Report Form (the “HSR Filing”) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), in connection with Boston Scientific’s proposed acquisition of Silk Road Medical.
This voluntary withdrawal is intended to give the U.S. Federal Trade Commission (FTC) additional time to review the proposed transaction.
More on the News
In June 2024, Boston Scientific announced that it has entered into a definitive agreement to acquire Silk Road Medical, a medical device company that has developed an innovative platform of products to prevent stroke in patients with carotid artery disease through a minimally invasive procedure called transcarotid artery revascularization. The purchase price is $27.50 per share, reflecting an enterprise value of approximately $1.16 billion.
The parties initially filed their respective HSR Filings on Jul 10, 2024. Boston Scientific’s HSR Filing was withdrawn effective as of Aug 9, and Boston Scientific expects to refile on Aug 13, 2024. Upon refiling on that date, a new 30-day waiting period under the HSR Act will commence and expire on Sep 12.
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.
Industry Prospects
Per a report by Grand View Research, 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.
Price Performance
For the year-to-date period, BSX’s shares have gained 36.1% compared with the industry’s rise of 8.7%. The S&P 500 increased 17.7% in the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
BSX sports a Zacks Rank #2 (Buy) at present.
Some other top-ranked stocks in the broader medical space are Universal Health Service (UHS - Free Report) , Quest Diagnostics (DGX - Free Report) and ABM Industries (ABM - Free Report) . While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Service has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 41.1% compared with the industry's 34.8% rise so far this year.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 3.7% so far this year compared with the industry’s 10.2% rise.
ABM Industries’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM's shares have risen 24.1% so far this year compared with the industry’s 11.9% growth.
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Boston Scientific (BSX), Silk Road Merger Delayed for Review
Boston Scientific (BSX - Free Report) recently elected to voluntarily withdraw and refile its Premerger Notification and Report Form (the “HSR Filing”) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), in connection with Boston Scientific’s proposed acquisition of Silk Road Medical.
This voluntary withdrawal is intended to give the U.S. Federal Trade Commission (FTC) additional time to review the proposed transaction.
More on the News
In June 2024, Boston Scientific announced that it has entered into a definitive agreement to acquire Silk Road Medical, a medical device company that has developed an innovative platform of products to prevent stroke in patients with carotid artery disease through a minimally invasive procedure called transcarotid artery revascularization. The purchase price is $27.50 per share, reflecting an enterprise value of approximately $1.16 billion.
The parties initially filed their respective HSR Filings on Jul 10, 2024. Boston Scientific’s HSR Filing was withdrawn effective as of Aug 9, and Boston Scientific expects to refile on Aug 13, 2024. Upon refiling on that date, a new 30-day waiting period under the HSR Act will commence and expire on Sep 12.
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.
Industry Prospects
Per a report by Grand View Research, 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.
Price Performance
For the year-to-date period, BSX’s shares have gained 36.1% compared with the industry’s rise of 8.7%. The S&P 500 increased 17.7% in the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
BSX sports a Zacks Rank #2 (Buy) at present.
Some other top-ranked stocks in the broader medical space are Universal Health Service (UHS - Free Report) , Quest Diagnostics (DGX - Free Report) and ABM Industries (ABM - Free Report) . While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Service has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 41.1% compared with the industry's 34.8% rise so far this year.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 3.7% so far this year compared with the industry’s 10.2% rise.
ABM Industries’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM's shares have risen 24.1% so far this year compared with the industry’s 11.9% growth.