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Boston Scientific to Acquire Silk Road Medical, Inc.

Wednesday, June 19, 2024

Boston Scientific Corporation has announced its intention to acquire Silk Road Medical, a company known for its innovative medical devices aimed at preventing strokes in patients with carotid artery disease. The acquisition will be made at $27.50 per share, totaling approximately $1.16 billion in enterprise value.i

Carotid artery disease, responsible for one-third of all strokes, involves the narrowing or blockage of carotid arteries due to plaque buildup. Treatment options include medical therapy, stent placement, or surgery to reduce the risk of stroke.

The TCAR (transcarotid artery revascularization) procedure, pioneered by Silk Road Medical, involves accessing the carotid artery through a small neck incision to temporarily redirect blood flow away from the brain, preventing plaque dislodgment. A stent is then placed to stabilize plaque and reduce the risk of future strokes.

President of Vascular, Peripheral Interventions at Boston Scientific, emphasized the significance of Silk Road Medical's TCAR platform in vascular medicine, describing it as a transformative advancement in stroke prevention and carotid artery disease management.

The acquisition underscores Boston Scientific's commitment to delivering innovative solutions for physicians treating peripheral vascular disease.

Silk Road Medical's TCAR system received FDA approval in 2015 and is supported by several clinical studies demonstrating its effectiveness in reducing stroke and complication risks compared to traditional open surgery.

Their products are currently the only commercially available devices for TCAR procedures.

Boston Scientific expects to finalize the acquisition in the second half of 2024, pending customary closing conditions.

Silk Road Medical anticipates net revenues of approximately $194-198 million for 2024, reflecting growth of 10-12% over the previous fiscal year.iii The acquisition's impact on Boston Scientific's adjusted earnings per share is projected to be minimal in 2024 and 2025, with potential accretive effects thereafter.

However, the impact on GAAP earnings per share may vary due to amortization expenses and acquisition-related charges.





Source: prnewswire.com

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