Boston Scientific Shares Surge with Bolt Medical Acquisition
Boston Scientific Corporation (NYSE:BSX) shares rose by 4.6% after the company announced it had agreed to acquire Bolt Medical, which is developing an innovative laser-based platform for the treatment of arterial disease. This acquisition, expected to be completed in the first half of 2025, aligns with Boston Scientific's strategic investments in cardiovascular technologies and signifies the company's entry into the intravascular lithotripsy (IVL) market.
The acquisition of Bolt Medical is viewed as a strategic expansion of Boston Scientific's cardiovascular product portfolio. Bolt Medical's IVL system, currently in the research phase, offers a minimally invasive treatment option for patients with complex calcified arterial disease by using acoustic pressure waves to break calcium within arterial lesions. This technology is expected to complement Boston Scientific's existing interventional cardiology therapies and address a significant unmet need in the treatment of coronary and peripheral artery disease.
The terms of the deal include an upfront payment of approximately $443 million for the remaining 74% stake in Bolt Medical, which Boston Scientific does not already own, along with up to an additional $221 million contingent upon regulatory milestones. The company has been a strategic investor in Bolt Medical since 2019, holding a 26% stake, which will result in a one-time gain recorded at the closing of the transaction.
While Boston Scientific expects the acquisition to slightly reduce its adjusted earnings per share (EPS) in 2025, it anticipates balancing this with internal cost efficiencies. Under generally accepted accounting principles (GAAP), the transaction is expected to be more dilutive primarily due to amortization expenses and acquisition-related costs.
Analysts reacted positively to the news; BTIG analyst Marie Thibault reiterated a Buy rating and a target price of $101.00 for Boston Scientific. Thibault commented, "We believe this is the right move for BSX and we see the company continuing to be forward-looking in its innovation across its Cardiovascular portfolio." The acquisition is seen as a forward-looking step that could position Boston Scientific competitively in a high-growth market segment and enhance its cardiovascular product offerings.
This acquisition, along with ongoing research and development efforts in other areas of cardiovascular medicine, underscores Boston Scientific's commitment to innovation and strategic growth. With this transaction expected to be completed in the coming years, Boston Scientific aims to further solidify its leadership position in the medical devices arena for cardiovascular care.