Boston Scientific Acquires Silk Road Medical for $1.16B – M&A

What You Should Know: 

Boston Scientific Corporation (NYSE: BSX) announced a definitive agreement to acquire Silk Road Medical, Inc. (Nasdaq: SILK) for approximately $1.16 billion ($27.50 per share). Silk Road Medical is a leading innovator in minimally invasive stroke prevention technologies for patients with carotid artery disease.

– The acquisition strengthens Boston Scientific’s position in the vascular medicine field, offering physicians a broader range of solutions for treating peripheral vascular disease and improving patient outcomes.

Combating Stroke Risk with TCAR

Carotid artery disease, a narrowing or blockage of the carotid arteries in the neck due to plaque buildup, is a major risk factor for stroke. It’s responsible for roughly one-third of all strokes. Current treatment options include medication, stenting, and traditional surgery.

Silk Road Medical’s focus lies on transcarotid artery revascularization (TCAR), a minimally invasive procedure for stroke prevention. This approach involves a small incision in the neck to access the carotid artery. Blood flow is temporarily diverted away from the brain to prevent plaque dislodgement, followed by stent placement to stabilize the blockage and reduce future stroke risk.

A Significant Leap in Stroke Prevention

The TCAR system received FDA approval in 2015 and boasts multiple clinical studies demonstrating its effectiveness in reducing stroke risk and complications compared to traditional open surgery. Importantly, Silk Road Medical offers the only commercially available devices specifically designed for TCAR procedures.

“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.”

Transaction Details and Future Outlook

The acquisition is expected to close in the second half of 2024, subject to customary closing conditions. Silk Road Medical projects net revenue of approximately $194-198 million for 2024, reflecting a 10-12% increase over the previous year. While the impact on Boston Scientific’s adjusted earnings per share is anticipated to be minimal in 2024 and 2025, it’s expected to become accretive thereafter.