Boston Scientific announces agreement to acquire Silk Road Medical for $1.16 B

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US-based Boston Scientific Corporation has entered into a definitive agreement to acquire Silk Road Medical, Inc., a medical device company that has developed an innovative platform of products to prevent stroke in patients with carotid artery disease through a minimally invasive procedure called transcarotid artery revascularisation (TCAR). The purchase price is $27.50 per share, reflecting an enterprise value of approximately $1.16 billion.

Carotid artery disease is the cause of one-third of all strokes and a condition in which the carotid arteries in the neck become narrowed or blocked due to the buildup of plaque. Treatment options for this disease include medical therapy management, placement of a stent, or surgery to reduce the risk of stroke.

The TCAR procedure involves accessing the carotid artery through a small incision in the neck and temporarily reversing blood flow away from the brain to prevent plaque from dislodging and causing a stroke. A stent is then placed at the site of the blockage for long-term plaque stabilisation and future stroke prevention.

The TCAR system gained US Food and Drug Administration approval in 2015 and is supported by several clinical studies demonstrating a reduced risk of stroke and other complications associated with traditional open surgery. The products sold by Silk Road Medical are the only devices commercially available for use during the TCAR procedure.

Boston Scientific expects to complete the transaction in the second half of 2024, subject to customary closing conditions. Silk Road Medical has guided to net revenue of approximately $194-198 million in 2024, representing 10-12% growth over the prior fiscal year.