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Boston Scientific (BSX) to Divest BTG's Non-MedTech Arm
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In its effort to focus particularly on core business growth, Boston Scientific Corporation (BSX - Free Report) recently decided to divest its BTG Specialty Pharmaceuticals business. The company entered into a definitive agreement with a European specialty pharmaceutical group, Stark International Lux S.A.R.L., and SERB SAS, affiliates of SERB, to sell off BTG Specialty Pharmaceuticals for $800 million in cash.
The transaction is expected to close in the first half of 2021, subject to customary regulatory approvals and other closing conditions.
SERB currently holds a diversified portfolio of prescription medicines, focused on rare and life-threatening diseases.
A Peek into BTG Business
Boston Scientific had acquired the BTG business back in 2019 for a colossal $3.7 billion net of cash on hand.
Of BTG’s three legacy businesses, its Interventional Medicine portfolio, including various Peripheral Interventions product lines, is the largest. The interventional oncology suite encompasses the TheraSphere Y-90 radiotherapy microspheres and the GALIL cryoablation system, which are used to treat liver, kidney and other cancer patients. Furthermore, BTG's Interventional Medicine business also boasts a vascular portfolio, including filters, crossing catheters, microfoam and the EKOS Endovascular System.
The other two parts of the legacy BTG businesses fall under non-medical device category. Among those, the Pharmaceutical Licensing royalties were divested in the fourth quarter of 2019 and the Specialty Pharmaceuticals business divestment has finally been announced now.
A Strategic Move
BTG Specialty Pharmaceuticals’ business currently develops, manufactures and commercializes life-saving antidotes used in hospitals and emergency care settings. These include clinically proven products like CroFab, DigiFab and Voraxaze. The three franchises are expected to generate approximately $210 million in revenues for full-year 2020.
Post the selloff to the European specialty pharmaceutical group, BTG Specialty Pharmaceuticals’ business capabilities and portfolio are expected to strongly complement the SERB product line. This business will be able to further its potential as a fully integrated specialty pharmaceuticals platform.
From Boston Scientific’s point of view, the divestment will help the company to focus on the core Interventional Medicines business, which was originally the primary driver behind the BTG acquisition. This business has delivered strong growth so far and now is expected to exceed Boston Scientific’s original goal of $175 million in synergies.
Price Performance
Shares of Boston Scientific have underperformed its industry in a year's time. The stock has declined 21% against the industry's 4% increase.
Zacks Rank & Key Picks
Currently, Boston Scientific carries a Zacks Rank #3 (Hold).
ResMed’s long-term earnings growth rate is estimated at 14.5%. The company presently carries a Zacks Rank #2 (Buy).
Thermo Fisher’s long-term earnings growth rate is estimated at 18%. It currently carries a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Boston Scientific (BSX) to Divest BTG's Non-MedTech Arm
In its effort to focus particularly on core business growth, Boston Scientific Corporation (BSX - Free Report) recently decided to divest its BTG Specialty Pharmaceuticals business. The company entered into a definitive agreement with a European specialty pharmaceutical group, Stark International Lux S.A.R.L., and SERB SAS, affiliates of SERB, to sell off BTG Specialty Pharmaceuticals for $800 million in cash.
The transaction is expected to close in the first half of 2021, subject to customary regulatory approvals and other closing conditions.
SERB currently holds a diversified portfolio of prescription medicines, focused on rare and life-threatening diseases.
A Peek into BTG Business
Boston Scientific had acquired the BTG business back in 2019 for a colossal $3.7 billion net of cash on hand.
Of BTG’s three legacy businesses, its Interventional Medicine portfolio, including various Peripheral Interventions product lines, is the largest. The interventional oncology suite encompasses the TheraSphere Y-90 radiotherapy microspheres and the GALIL cryoablation system, which are used to treat liver, kidney and other cancer patients. Furthermore, BTG's Interventional Medicine business also boasts a vascular portfolio, including filters, crossing catheters, microfoam and the EKOS Endovascular System.
The other two parts of the legacy BTG businesses fall under non-medical device category. Among those, the Pharmaceutical Licensing royalties were divested in the fourth quarter of 2019 and the Specialty Pharmaceuticals business divestment has finally been announced now.
A Strategic Move
BTG Specialty Pharmaceuticals’ business currently develops, manufactures and commercializes life-saving antidotes used in hospitals and emergency care settings. These include clinically proven products like CroFab, DigiFab and Voraxaze. The three franchises are expected to generate approximately $210 million in revenues for full-year 2020.
Post the selloff to the European specialty pharmaceutical group, BTG Specialty Pharmaceuticals’ business capabilities and portfolio are expected to strongly complement the SERB product line. This business will be able to further its potential as a fully integrated specialty pharmaceuticals platform.
From Boston Scientific’s point of view, the divestment will help the company to focus on the core Interventional Medicines business, which was originally the primary driver behind the BTG acquisition. This business has delivered strong growth so far and now is expected to exceed Boston Scientific’s original goal of $175 million in synergies.
Price Performance
Shares of Boston Scientific have underperformed its industry in a year's time. The stock has declined 21% against the industry's 4% increase.
Zacks Rank & Key Picks
Currently, Boston Scientific carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader medical space are Hologic (HOLX - Free Report) , ResMed (RMD - Free Report) and Thermo Fisher Scientific (TMO - Free Report) .
Hologic’s long-term earnings growth rate is estimated at 17.4%. It currently sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
ResMed’s long-term earnings growth rate is estimated at 14.5%. The company presently carries a Zacks Rank #2 (Buy).
Thermo Fisher’s long-term earnings growth rate is estimated at 18%. It currently carries a Zacks Rank #2.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>