Boston Scientific expands its position in the medical equipment market
Boston Scientific of the United States, which is engaged in the production of equipment for the medical sector, announced the purchase of Apollo Endosurgery. The acquisition is valued at 417 million dollars. Thus Boston Scientific plans to expand its presence in the production of devices for the treatment of diseases related to gastric malfunction.
Apollo Endosurgery is engaged in the development and production of equipment used for surgical interventions for gastric diseases. In addition to the acquisition, Boston Scientific assumes the payment of the manufacturer’s debt, so the transaction amount including all costs will be $615 million.
According to the offer from the buyer, the shares of Apollo Endosurgery were valued at $10 per share, which is a premium of almost 67% over the closing market price. Following the announcement of the deal, the value of the company’s securities rose 63%. The deal is to be completed by the first half of this year. At the same time, experts do not forecast a significant increase in profits for Boston Scientific for the current year, but the deal will help strengthen its position in the medical equipment market and introduce products in new areas.Boston Scientific manufactures equipment and materials for surgical purposes. The company supplies devices for treatment and surgical interventions for cardiovascular diseases and oncopathology, gynecological and urological surgeries, as well as endoscopy and neurosurgery. The main product of Boston Scientific is the Taxus stent, which contains the drug paclitaxel. The latter is designed to open blocked arteries. However, there is a scandal associated with this stent, which involved patent rights and caused a long process of litigation.
Such corporations as Johnson & Johnson and Medtronic are considered direct competitors of Boston Scientific. In 2006, the company absorbed another of its competitors, Guidant. The transaction amounted to 27 billion, and after the purchase, the business was divided into two parts, one of which went to Abbott Laboratories.
In 2018, a manufacturer of invasive devices, BTG from the UK, joined Boston Scientific. In this way, the buyer expanded its line of products for the treatment of cancer and lung problems. The deal was valued at more than $4.2 billion.
Apollo Endosurgery operates primarily in the endoscopic surgery devices sector. The company is also a supplier of suture systems. In addition, it has received approval from U.S. regulatory agencies for a new device for treating obesity. The business had estimated sales of $76 million as of 2022.