Boston Scientific to acquire Silk Road Medical for $1.2bn to enhance stroke prevention capabilities

Boston Scientific Corporation (NYSE: BSZ) has announced its definitive agreement to acquire Silk Road Medical, Inc. (Nasdaq: SILK) for $27.50 per share, reflecting an enterprise value of approximately $1.16 billion. This transaction, which is a 38% premium over the volume-weighted average share price of Silk Road Medical’s stock over the past 60 days, is expected to close in the second half of 2024, pending approval by Silk Road’s shareholders and regulatory bodies.

Advancements in Stroke Prevention

Silk Road Medical is a leader in developing medical devices for the minimally invasive procedure known as transcarotid artery revascularization (TCAR). This procedure is designed to prevent strokes in patients with carotid artery disease by temporarily reversing blood flow during plaque removal and stent placement. The acquisition will allow Boston Scientific to integrate Silk Road’s innovative TCAR platform into its vascular and peripheral interventions portfolio.

Boston Scientific announces a transformative acquisition of Silk Road Medical to enhance its stroke prevention capabilities in the medical device sector.

Strategic Implications and Shareholder Impact

Upon completion, Silk Road Medical will become a wholly-owned subsidiary of Boston Scientific. The integration promises to enhance Boston Scientific’s offerings in vascular medicine, a move that Cat Jennings, president of Vascular, Peripheral Interventions at Boston Scientific, believes will demonstrate the company’s commitment to innovation in medical technology.

Clinical and Commercial Potential

The TCAR system, which received U.S. Food and Drug Administration approval in 2015, has been supported by several clinical studies showing reduced stroke risk and complications compared to traditional surgery. With Silk Road Medical expecting net revenue of approximately $194-198 million in 2024, the acquisition is poised to provide significant growth opportunities for Boston Scientific in the expanding market for stroke prevention solutions.

The acquisition of Silk Road Medical by Boston Scientific is a strategic move that aligns with Boston Scientific’s growth objectives in the peripheral vascular market. By acquiring Silk Road, Boston Scientific not only broadens its portfolio with a clinically differentiated technology but also reinforces its position as a leader in medical innovations that enhance patient care and outcomes.