Boston Scientific Stock Soars 3.98% After Landmark Axonics Acquisition Completion
1min read On November 18, Boston Scientific (BSX) saw a notable rise of 3.98% in its stock price, even reaching a historic high during the trading day. This upward trend comes on the heels of a significant acquisition by the company.
On November 15, Boston Scientific announced the completion of its acquisition of Axonics, Inc., a company renowned for its sacral nerve stimulation (SNS) technology used to treat urinary and bowel disorders. The acquisition, executed at $71 per share, values Axonics at approximately $37 billion in equity, with the total enterprise value around $34 billion after accounting for Axonics' cash holdings.
This acquisition marks a strategic expansion of Boston Scientific's urology portfolio by integrating Axonics' SNS systems. Initially announced in January, the completion of the acquisition faced delays due to additional information requests from the Federal Trade Commission, but the transaction has now been finalized.
Incorporating Axonics' offerings, Boston Scientific enhances its position in the high-growth urology sector, aiming to address patients' needs worldwide with tailored treatment solutions based on the severity of incontinence. According to Meghan Scanlon, Senior VP and President of Urology at Boston Scientific, the acquisition is set to expand the company's presence in the sacral nerve modulation market.
The closure of this deal also brings changes in leadership structures, with key executives from Axonics transitioning out post-acquisition. Despite these restructuring efforts, Boston Scientific expects minimal immediate impact on its earnings per share for 2024 and 2025, with anticipated growth in subsequent years.
Against this backdrop, the acquisition further solidifies Boston Scientific's standing in the urology and pelvic health medical technology markets, fortifying its focus on patient-centric solutions for chronic health conditions.
The strategic move aligns with Boston Scientific's broader acquisition-driven growth agenda, aiming to boost category leadership and expedite entry into rapidly growing markets, as outlined during their Investor Day in September 2023.