Sam Brusco, Associate Editor06.18.24
Boston Scientific began a deal to acquire Silk Road Medical for a purchase price of $27.50 per share, which creates an enterprise value of about $1.16 billion.
Silk Road Medical has a platform of products to prevent stroke in carotid artery disease patients via a minimally invasive procedure called transcarotid artery revascularization (TCAR).
In the TCAR procedure, the carotid artery is accessed through a small incision in the neck. Blood flow is temporarily reversed away from the brain to prevent plaque from dislodging and causing a stroke. A stent is then placed at the blockage site for long-term stabilization of plaque and future prevention of stroke.
The TCAR system earned U.S. Food and Drug Administration (FDA) approval in 2015. It’s supported by clinical studies that demonstrated reduced risk of stroke and other complications related to open surgery. Silk Road’s products are the only devices available for use in the TCAR procedure.
Earlier this year, Silk Road launched its Enroute Transcarotid Neuroprotection System Plus (NPS PLUS).
Boston Scientific anticipates the deal to close in H2 2024. Silk Road’s revenue guidance in 2024 is about $194-198 million, 10-12% growth over its previous fiscal year.
"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."
Impact to Boston Scientific’s adjusted earnings per share is expected to be immaterial in 2024 and 2025, and accretive thereafter.
Silk Road Medical has a platform of products to prevent stroke in carotid artery disease patients via a minimally invasive procedure called transcarotid artery revascularization (TCAR).
In the TCAR procedure, the carotid artery is accessed through a small incision in the neck. Blood flow is temporarily reversed away from the brain to prevent plaque from dislodging and causing a stroke. A stent is then placed at the blockage site for long-term stabilization of plaque and future prevention of stroke.
The TCAR system earned U.S. Food and Drug Administration (FDA) approval in 2015. It’s supported by clinical studies that demonstrated reduced risk of stroke and other complications related to open surgery. Silk Road’s products are the only devices available for use in the TCAR procedure.
Earlier this year, Silk Road launched its Enroute Transcarotid Neuroprotection System Plus (NPS PLUS).
Boston Scientific anticipates the deal to close in H2 2024. Silk Road’s revenue guidance in 2024 is about $194-198 million, 10-12% growth over its previous fiscal year.
"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."
Impact to Boston Scientific’s adjusted earnings per share is expected to be immaterial in 2024 and 2025, and accretive thereafter.