Back to top

Analyst Blog

Zacks Equity Research

BSX to Acquire BridgePoint Medical

BSX MDT EW

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Boston Scientific (BSX - Analyst Report), in order to strengthen its interventional cardiology portfolio, has signed a definitive agreement to acquire Minnesota-based BridgePoint Medical. The transaction is expected to close in the fourth quarter of 2012. However, financial details of the deal were not disclosed.  

On successful completion of the deal, Boston Scientific’s portfolio would include a catheter-based system developed by BridgePoint Medical to treat coronary chronic total occlusions (CTOs). The system has received both US Food and Drug Administration (‘FDA’) and CE Mark approvals.

CTO prevents blood circulation to critical areas of the heart. As such, the CTO devices enable treatment in these cases that otherwise would have required the patient to undergo invasive intervention, such as coronary artery bypass surgery.

During the last reported quarter, revenues from Interventional Cardiology (other than coronary stent system) increased 3% at constant currency to $209 million comprising US sales of $78 million and international sales of $131 million.

Following the CE Mark approval of the Emerge PTCA dilatation catheter in the EMEA region in April this year, the company launched the product. The company expects to unveil this product in the US market in the third quarter.  Furthermore, it anticipates introducing additional new products in vascular access, balloon catheters and IVUS during 2012.

Boston Scientific diversified the portfolio of this business with the acquisitions of Atritech and Sadra Medical, both in 2011. The former brought in the Watchman Left Atrial Appendage Closure device which offers an alternative to anticoagulant drugs and is CE Mark approved.  The company is working to get the device approved in the US, possibly in 2013.

On the other hand, with the acquisition of Sadra Medical, Boston Scientific is developing a fully repositionable and retrievable device, Lotus valve system, for transcatheter aortic valve replacement to treat patients with severe aortic stenosis. This business, apart from being immensely promising, is also highly competitive with players such as Medtronic (MDT - Analyst Report) and Edwards Lifesciences (EW - Analyst Report) competing to increase their respective market share in Europe.   

We are impressed with Boston Scientific’s recent acquisitions, which reflect its focus on new therapies to drive top line. This strategy is significant given the poor performance of its core segments of stents and defibrillators.

We have a Neutral recommendation on Boston Scientific. The stock retains a Zacks #3 Rank (“Hold”) in the short term.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%