Acquisition adds innovative technology for
stroke prevention to vascular portfolio
MARLBOROUGH, Mass., June 18,
2024 /PRNewswire/ -- Boston Scientific Corporation
(NYSE: BSX) today announced it has entered into a definitive
agreement to acquire Silk Road Medical, Inc. (Nasdaq: SILK), 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 (TCAR). The purchase price is $27.50 per share, reflecting an enterprise value
of approximately $1.16
billion.i
Carotid artery disease is the cause of one-third of all strokes
and a condition in which the carotid arteries in the neck become
narrowed or blocked due to the buildup of plaque.ii
Treatment options for this disease include medical therapy
management, placement of a stent, or surgery to reduce the risk of
stroke. The TCAR procedure involves accessing the carotid artery
through a small incision in the neck and temporarily reversing
blood flow away from the brain to prevent plaque from dislodging
and causing a stroke. A stent is then placed at the site of the
blockage for long-term plaque stabilization and future stroke
prevention.
"The TCAR platform developed by Silk Road Medical is a notable
advancement in the field of vascular medicine, which has
revolutionized stroke prevention and the treatment of carotid
artery disease," said Cat Jennings, president, Vascular, Peripheral
Interventions, Boston Scientific. "We believe the addition of this
clinically differentiated technology to our vascular portfolio
demonstrates our continued commitment to provide meaningful
innovation for physicians who care for patients with peripheral
vascular disease."
The TCAR system gained U.S. Food and Drug Administration
approval in 2015 and is supported by several clinical studies
demonstrating a reduced risk of stroke and other complications
associated with traditional open surgery. The products sold by Silk
Road Medical are the only devices commercially available for use
during the TCAR procedure.
Boston Scientific expects to complete the transaction in the
second half of 2024, subject to customary closing conditions. Silk
Road Medical has guided to net revenue of approximately
$194-198 million in 2024,
representing 10-12% growth over the prior fiscal
year.iii The impact to Boston Scientific adjusted
earnings per share is expected to be immaterial in 2024 and 2025,
and accretive thereafter. We expect the impact to GAAP earnings per
share to be less accretive, or dilutive, as the case may be, due to
amortization expense and acquisition-related net charges.
About Boston Scientific
Boston Scientific transforms lives through innovative medical
technologies that improve the health of patients around the world.
As a global medical technology leader for more than 40 years, we
advance science for life by providing a broad range of
high-performance solutions that address unmet patient needs and
reduce the cost of health care. Our portfolio of devices and
therapies helps physicians diagnose and treat complex
cardiovascular, respiratory, digestive, oncological, neurological
and urological diseases and conditions. Learn more at
www.bostonscientific.com and connect on LinkedIn
and X, formerly Twitter.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements may be identified by words like
"anticipate," "expect," "project," "believe," "plan," "estimate,"
"intend" and similar words. These forward-looking statements are
based on our beliefs, assumptions and estimates using information
available to us at the time and are not intended to be guarantees
of future events or performance. These forward-looking statements
include, among other things, statements regarding financial and
business impact of the transaction and anticipated benefits of the
transaction, the closing of the transaction and the timing thereof,
business plans and strategy, product launches and product
performance and impact. If our underlying assumptions turn out to
be incorrect, or if certain risks or uncertainties materialize,
actual results could vary materially from the expectations and
projections expressed or implied by our forward-looking statements.
These factors, in some cases, have affected and in the future
(together with other factors) could affect our ability to implement
our business strategy and may cause actual results to differ
materially from those contemplated by the forward-looking
statements expressed in this press release. As a result, readers
are cautioned not to place undue reliance on any of our
forward-looking statements.
Risks and uncertainties that may cause such differences include,
among other things: economic, political, competitive,
reimbursement and regulatory conditions; geopolitical events;
manufacturing, distribution and supply chain disruptions and cost
increases; disruptions caused by cybersecurity events; disruptions
caused by public health emergencies or extreme weather or other
climate change-related events; labor shortages and increases in
labor costs; variations in outcomes of ongoing and future clinical
trials and market studies; new product introductions and the market
acceptance of those products; market competition for our products;
expected pricing environment; expected procedural volumes;
demographic trends; the closing and integration of acquisitions,
including our ability to achieve the anticipated benefits of the
proposed transaction and successfully integrate Silk Road Medical's
operations; business disruptions (including disruptions in
relationships with employees, customers and suppliers) following
the announcement and/or closing of the proposed transaction;
intellectual property rights; litigation; financial market
conditions; the execution and effect of our business strategy,
including our cost-savings and growth initiatives; future
business decisions made by us and our competitors; the conditions
to the completion of the proposed transaction, including receipt of
the required regulatory approvals and clearances, may not be
satisfied at all or in a timely manner; and the closing of the
proposed transaction may not occur or may be delayed. New risks and
uncertainties may arise from time to time and are difficult to
predict. All of these factors are difficult or impossible to
predict accurately and many of them are beyond our control. For a
further list and description of these and other important risks and
uncertainties that may affect our future operations, see Part I,
Item 1A – Risk Factors in our most recent Annual Report on Form
10-K filed with the Securities and Exchange Commission ("SEC"),
which we may update in Part II, Item 1A – Risk Factors in Quarterly
Reports on Form 10-Q we have filed or will file hereafter. We
disclaim any intention or obligation to publicly update or revise
any forward-looking statements to reflect any change in our
expectations or in events, conditions or circumstances on which
those expectations may be based, or that may affect the likelihood
that actual results will differ from those contained in the
forward-looking statements, except as required by law. This
cautionary statement is applicable to all forward-looking
statements contained in this press release.
CONTACTS:
Blake Rouhani
Media Relations
(763) 494-2268
blake.rouhani@bsci.com
Jon Monson
Investor Relations
(508) 683-5450
BSXInvestorRelations@bsci.com
i Enterprise value of approximately $1.16 billion based on approximately 46.0 million
fully diluted shares (or approximately $1.26
billion for 100% of the equity) and $101 million net cash position as of March 31, 2024
ii Weerd M Stroke 2010; Modus Health Group for 2022
Vascularweb.org; Virani, Salim, et al. "Heart Disease and Stroke
Statistics— 2020 Update." American Heart Association, 3 Mar. 2020.
iii
https://investors.silkroadmed.com/news-releases/news-release-details/silk-road-medical-reports-first-quarter-2024-financial-results#:~:text=Silk%20Road%20Medical%20projects%20revenue,the%20Company's%20prior%20year%20revenue.
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SOURCE Boston Scientific Corporation