Boston Scientific Closes Acquisition of Silk Road Medical

Boston Scientific has closed its acquisition of Silk Road Medical, a company that pioneered a new approach for stroke intervention and carotid artery disease treatment called transcarotid artery revascularization (TCAR).
 
The deal, which was first announced in June 2024, was valued at a purchase price of $27.50 per share, which creates an enterprise value of about $1.18 billion.
 
In the TCAR procedure, the carotid artery is accessed through a small incision in the neck. Blood flow is temporarily reversed away from the brain to prevent plaque from dislodging and causing a stroke. A stent is then placed at the blockage site for long-term stabilization of plaque and future prevention of stroke.
 
The TCAR system earned U.S. Food and Drug Administration (FDA) approval in 2015. It’s supported by clinical studies that demonstrated reduced risk of stroke and other complications related to open surgery. Silk Road’s products are the only devices available for use in the TCAR procedure.
 
“Completing this acquisition enables Boston Scientific to strengthen our vascular technology solutions by bringing the innovative TCAR platform to a greater number of physicians and their patients through our significant commercial reach,” said Cat Jennings, president, Vascular, Peripheral Interventions, Boston Scientific. “The integration of the TCAR platform into our portfolio means we can offer a treatment option for patients suffering from carotid artery disease that can reduce the risk of stroke and lead to improved patient outcomes.”
 
Boston Scientific said impact to its adjusted earnings per share (EPS) is anticipated to be immaterial in 2024 and 2025, and accretive after that. The impact to GAAP earnings per share is expected to be less accretive, or dilutive, due to amortization expense and acquisition-related net charges.