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Boston Scientific to Expand Within PI Via VENITI Buyout
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In sync with its efforts to ramp up its inorganic growth, Boston Scientific Corporation (BSX - Free Report) has made an announcement of another strategic acquisition, this time within the company’s Peripheral Interventions (PI) business.
The company has signed an agreement to buy California-based privately-held VENITI, Inc., the developer of VICI VENOUS stent system for treating venous obstructive disease (instances of abnormal, blocked or damaged veins).
Financial Terms
Notably, Boston Scientific already possesses 25% shares of VENITI. To own the remaining stake, the company has offered $108million up-front cash as well as up to $52 million in payments, subject to the FDA’s approval of the VICI stent system.
A Glance Through Venous Obstructive Disease & Treatment Market
Vein obstructions can happen on conditions like deep vein thrombosis, post thrombotic syndrome and May-Thurner syndrome. This can prevent proper blood circulation and cause patients to experience pain, swelling, ulcers and a depressive quality of life.
At present, the evidence of Venous obstructive disease is quite prominent across the globe, indicating huge prospects for the treatment market. This disease has been found in more than 1.1 million people in the United States and Western Europe, annually.
Traditionally, physicians often choose to open the obstructed vessel with a stent to reinstate proper blood flow to the heart and lungs.
How VICI Stent System is Preferred to Traditional Approach
Per Boston Scientific,VENITI’s self-expanding, nitinol VICI stent system was developed specifically for use in the venous anatomy, presenting different challenges than placing stents in the arterial vascular system. This stent system can bear compression and maintain patency and flexibility over the course of a patient's life expectancy.
The VICI stent system currently awaits an FDA approval following its premarket approval submission in June. Meanwhile, Boston Scientific expects the inclusion of this system in its PI portfolio to be perfectly strategic given the fact that there are no stent technologies specifically indicated for use in the peripheral venous system.
Impressive Value-Adding Acquisitions
We are impressed with Boston Scientific’s several recent acquisitions, which have added several products (though many are under development) that show immense potential. Last reported quarter, the company notified four compelling tuck-in acquisitions, namely Claret, Cryterion, nVision and Securus. All these buyouts target high-growth markets, enhance the company’s category leadership strategy, leverage its existing global capabilities and further enrich the company’s short-term and long-term growth profiles.
Prior to this, the company also announced consolidations of NxThera and nVision in Urology and Pelvic Health, EmCision in Endoscopy, Securus in Electrophysiology and Millipede in Structural Heart. According to Boston Scientific, these transactions will bring in a host of exciting new market expansion opportunities in excess of $16 billion by 2021.
Price Performance
Shares of Boston Scientific have outperformed its industry in a year’s time. The stock has returned 12.3% compared with the industry’s 3.6% growth.
Inogen has a long-term expected earnings growth rate of 22.5% while the same for Integer Holdings and The Cooper Companies is pegged at 15% and 10.8%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Boston Scientific to Expand Within PI Via VENITI Buyout
In sync with its efforts to ramp up its inorganic growth, Boston Scientific Corporation (BSX - Free Report) has made an announcement of another strategic acquisition, this time within the company’s Peripheral Interventions (PI) business.
The company has signed an agreement to buy California-based privately-held VENITI, Inc., the developer of VICI VENOUS stent system for treating venous obstructive disease (instances of abnormal, blocked or damaged veins).
Financial Terms
Notably, Boston Scientific already possesses 25% shares of VENITI. To own the remaining stake, the company has offered $108million up-front cash as well as up to $52 million in payments, subject to the FDA’s approval of the VICI stent system.
A Glance Through Venous Obstructive Disease & Treatment Market
Vein obstructions can happen on conditions like deep vein thrombosis, post thrombotic syndrome and May-Thurner syndrome. This can prevent proper blood circulation and cause patients to experience pain, swelling, ulcers and a depressive quality of life.
At present, the evidence of Venous obstructive disease is quite prominent across the globe, indicating huge prospects for the treatment market. This disease has been found in more than 1.1 million people in the United States and Western Europe, annually.
Traditionally, physicians often choose to open the obstructed vessel with a stent to reinstate proper blood flow to the heart and lungs.
How VICI Stent System is Preferred to Traditional Approach
Per Boston Scientific,VENITI’s self-expanding, nitinol VICI stent system was developed specifically for use in the venous anatomy, presenting different challenges than placing stents in the arterial vascular system. This stent system can bear compression and maintain patency and flexibility over the course of a patient's life expectancy.
The VICI stent system currently awaits an FDA approval following its premarket approval submission in June. Meanwhile, Boston Scientific expects the inclusion of this system in its PI portfolio to be perfectly strategic given the fact that there are no stent technologies specifically indicated for use in the peripheral venous system.
Impressive Value-Adding Acquisitions
We are impressed with Boston Scientific’s several recent acquisitions, which have added several products (though many are under development) that show immense potential. Last reported quarter, the company notified four compelling tuck-in acquisitions, namely Claret, Cryterion, nVision and Securus. All these buyouts target high-growth markets, enhance the company’s category leadership strategy, leverage its existing global capabilities and further enrich the company’s short-term and long-term growth profiles.
Prior to this, the company also announced consolidations of NxThera and nVision in Urology and Pelvic Health, EmCision in Endoscopy, Securus in Electrophysiology and Millipede in Structural Heart. According to Boston Scientific, these transactions will bring in a host of exciting new market expansion opportunities in excess of $16 billion by 2021.
Price Performance
Shares of Boston Scientific have outperformed its industry in a year’s time. The stock has returned 12.3% compared with the industry’s 3.6% growth.
Key Picks
Boston Scientific currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the MedTech space are Inogen Inc (INGN - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and The Cooper Companies (COO - Free Report) , all three sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 22.5% while the same for Integer Holdings and The Cooper Companies is pegged at 15% and 10.8%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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