Boston Scientific to acquire Silk Road Medical for $1.16 billion

by Gus Iversen, Editor in Chief | June 19, 2024
Business Affairs Stroke
Boston Scientific has announced a definitive agreement to acquire Silk Road Medical for $27.50 per share, valuing the deal at approximately $1.16 billion, in an effort to expand its vascular portfolio with innovative stroke prevention technology.

Silk Road Medical specializes in a minimally invasive procedure called transcarotid artery revascularization (TCAR), which targets carotid artery disease. The condition, responsible for one-third of all strokes, involves the narrowing or blockage of carotid arteries due to plaque buildup. Traditional treatments include medical therapy, stent placement, or surgery; whereas TCAR offers an alternative by making a small incision in the neck, temporarily reversing blood flow to prevent dislodged plaque from reaching the brain, and placing a stent to stabilize plaque and prevent future strokes.

Cat Jennings, president of vascular and peripheral interventions at Marlborough, Massachusetts-based Boston Scientific, highlighted the significance of TCAR, stating, "The TCAR platform developed by Silk Road Medical is a notable advancement in the field of vascular medicine, which has revolutionized stroke prevention and the treatment of carotid artery disease."

FDA approved in 2015, the TCAR system is backed by multiple clinical studies demonstrating reduced stroke risk and fewer complications compared to traditional surgery. Silk Road Medical's products are the only devices approved for use in the TCAR procedure.

Boston Scientific anticipates closing the transaction in the second half of 2024, pending customary closing conditions. Silk Road Medical projects net revenue of approximately $194-198 million in 2024, reflecting a 10-12% increase from the previous year.

Earlier this year, Boston Scientific agreed to purchase Axonics Inc., a major player in the development of innovative devices for urinary and bowel dysfunction treatments, in a $3.7 billion deal poised to significantly bolster Boston Scientific's urology portfolio.

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