Boston Scientific Corporation has announced a definitive agreement to acquire Silk Road Medical, Inc. for approximately $1.16 billion ($27.50 per share). Silk Road Medical is known for its minimally invasive stroke prevention technologies for patients with carotid artery disease. This acquisition will bolster Boston Scientific's position in vascular medicine, providing physicians with a wider range of solutions for treating peripheral vascular disease and improving patient outcomes.
Silk Road Medical specializes in transcarotid artery revascularization (TCAR), a minimally invasive procedure that helps prevent strokes by addressing carotid artery disease, a significant risk factor for stroke. TCAR involves a small neck incision to access the carotid artery, temporarily diverting blood flow away from the brain to prevent plaque dislodgement, followed by stent placement to stabilize the blockage.
The TCAR system, which received FDA approval in 2015, has demonstrated effectiveness in reducing stroke risk and complications compared to traditional surgery. Silk Road Medical offers the only commercially available devices specifically designed for TCAR procedures. Cat Jennings, president of Vascular, Peripheral Interventions at Boston Scientific, emphasized the significance of the TCAR platform as a revolutionary advancement in stroke prevention and carotid artery disease treatment.
The acquisition is expected to close in the second half of 2024, subject to customary conditions. Silk Road Medical projects net revenue of approximately $194-198 million for 2024, reflecting a 10-12% increase from the previous year. The impact on Boston Scientific’s adjusted earnings per share is expected to be minimal in 2024 and 2025 but will become accretive thereafter.
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