Boston Scientific Surges On $900 Million Takeover Of Bolt Medical

Boston Scientific Corporation (NYSE: BSX) shares surged on Wednesday after the company announced a definitive agreement to acquire Bolt Medical, Inc., a developer of an intravascular lithotripsy (IVL) advanced laser-based platform for the treatment of coronary and peripheral artery disease. The deal, valued at up to $900 million, is expected to close in the first half of 2025, subject to customary closing conditions.

Boston Scientific will pay $443 million upfront for the 74% stake in Bolt Medical that it does not already own, with an additional $221 million in potential milestone payments upon achievement of certain regulatory milestones. The deal is expected to be slightly dilutive to adjusted earnings per share (EPS) in 2025 on an adjusted basis, but internal cost efficiencies and trade-offs are expected to offset this dilution. On a GAAP basis, the transaction is expected to be more dilutive due to amortization expense and acquisition-related charges, except for a one-time gain to be recognized at closing associated with the company's previously held equity interest in Bolt Medical.

The acquisition of Bolt Medical is strategically important for Boston Scientific, as it fills a product gap in the company's coronary portfolio and provides access to a next-generation IVL technology that complements its existing interventional cardiology therapies. The Bolt IVL system is designed to fracture calcium by creating acoustic pressure waves inside of a balloon catheter, allowing for the treatment of calcified lesions with minimal risk of injury to the blood vessel.



Boston Scientific's acquisition of Bolt Medical comes on the heels of several other significant medtech acquisitions announced this week, including Stryker's $4.9 billion purchase of Inari Medical. The deal is also a continuation of Boston Scientific's aggressive M&A strategy in 2024, which included the $3.7 billion acquisition of urology device company Axonics and the $1.28 billion purchase of stroke prevention device maker Silk Road Medical.

The acquisition of Bolt Medical is expected to provide Boston Scientific with a new growth driver, as the IVL market is one of the fastest-growing medical device segments and addresses a significant unmet need for patients with complex calcified arterial disease. The Bolt IVL system has shown positive results in clinical trials, with no major complications in the 30 days after the procedure and no patients needing a second procedure to further reopen the vessel.

However, there is a potential risk that Johnson & Johnson (J&J) uses certain Shockwave patents to file an infringement suit against Boston Scientific upon commercialization of the Bolt IVL system. This could impact the company's financial performance in the long term. Additionally, the acquisition is expected to be slightly dilutive to adjusted EPS in 2025, which could affect the company's short-term financial performance.

In conclusion, Boston Scientific's acquisition of Bolt Medical is a strategic move that fills a product gap in the company's coronary portfolio and provides access to a next-generation IVL technology. The deal is expected to provide long-term growth opportunities for the company, but there are potential risks and challenges that could impact its financial performance in the short and long term.