Boston Scientific Announces Agreement to Acquire SoniVie Ltd.
Boston Scientific, Inc. (BSX) has entered into a definitive agreement to acquire SoniVie Ltd., a privately-held medical device company known for its TIVUS Intravascular Ultrasound System. Boston Scientific currently holds a 10% stake in SoniVie and will pay approximately $360 million to acquire the remaining 90%. An additional $180 million will be contingent upon achieving certain regulatory milestones.
The deal is anticipated to close in the first half of 2025, contingent upon customary closing conditions.
Market Reaction to the Acquisition Announcement
In response to the announcement, shares of Boston Scientific rose 1%, ending the session at $104.87. Renal denervation is gaining traction as a significant medical development in treating hypertension, backed by strong clinical evidence and ongoing research. This acquisition strengthens Boston Scientific’s capabilities in interventional cardiology by introducing a minimally invasive hypertension therapy, paving the way for future innovations in this area. Market sentiment around BSX stock is expected to remain positive due to these developments.
Boston Scientific has a current market capitalization of $153.17 billion. The Zacks Consensus Estimate for the company’s 2025 earnings per share (EPS) is projected at $2.85, reflecting a 13.6% year-over-year growth. Over the past four quarters, Boston Scientific has delivered an average earnings surprise of 8.3%.
Strategic Importance of the Acquisition and Its Financial Implications
Hypertension is a significant risk factor for cardiovascular disease, closely linked to the overactivity of the sympathetic nervous system. While conventional treatments involving lifestyle changes and anti-hypertensive medications often fall short in managing high blood pressure, ultrasound energy used in the TIVUS system may offer improved results. This technology allows deeper tissue penetration compared to radiofrequency energy and could lead to more efficient nerve ablation procedures.
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SoniVie’s investigational TIVUS system aims to provide renal artery denervation (RDN) to diminish the activity of renal nerves in the kidneys, offering a potential alternative or supplement to existing medications for blood pressure regulation. In 2024, the company released positive efficacy data from its IDE pilot trial of the TIVUS system conducted in the United States and Israel. Moreover, SoniVie has initiated the THRIVE global IDE pivotal trial for the device.
Boston Scientific anticipates that the acquisition will have a slight dilutive effect on its adjusted EPS for 2025, which may be offset by cost efficiencies and trade-offs. However, a higher level of dilution is expected on a GAAP basis due to amortization expenses and acquisition-related charges, aside from a one-time gain from previously-held equity in SoniVie.
Promising Market Outlook for Boston Scientific
According to a research report, the global renal denervation market was valued at $340.4 million in 2023 and is projected to grow at a compound annual growth rate of 40.2% through 2030. This market expansion is driven by technological advancements in renal denervation devices, as well as significant investments in clinical trials aimed at validating the safety and efficacy of these devices.
Recent Developments in Boston Scientific
Earlier in January 2025, Boston Scientific announced another acquisition agreement with Bolt Medical, Inc. to enhance its cardiovascular portfolio through a distinguished calcium modification platform. This move aligns with its strategy to tackle both coronary and peripheral diseases. Boston Scientific already owns a 26% stake in Bolt Medical and plans to pay approximately $443 million for the remaining stake, with an additional $221 million contingent on specific regulatory milestones.
Performance of BSX Stock
In the past year, Boston Scientific shares have surged by 55.5%, surpassing the industry growth of 11.8%.
BSX’s Zacks Rank and Comparisons
Boston Scientific currently holds a Zacks Rank #2 (Buy).
Other top-ranked stocks in the medical sector include Hims & Hers Health (HIMS), Inspira Medical Systems (INSP), and Cardinal Health (CAH), each also holding a Zacks Rank #2. For a comprehensive list of Zacks’ top stocks, please see today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Hims & Hers Health’s 2025 EPS rose by 34.6% to 70 cents in the last 30 days. The company’s shares have increased by 178.6% over the past year, in contrast to a 9.1% decline in its industry. HIMS has exceeded earnings estimates in two of the last four quarters, with an average surprise of 40.4%.
Inspira shares have seen a slight decline of 0.5% over the past year. The company’s 2025 EPS estimates have risen 6.4% to $2.16 recently. INSP has consistently surpassed its earnings estimates over the past four quarters, posting an average surprise of 332.5%. In its last reported quarter, it achieved a 55.4% earnings surprise.
Cardinal Health’s fiscal 2025 EPS estimates have improved by 14.7% to $7.94 over the past month. Its shares are up 15.2% in the last year, while the industry has grown by just 2.4%. The company has outperformed earnings expectations in each of the last four quarters, with an average surprise of 9.6% and a 10.3% surprise in its latest quarter.
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Boston Scientific Corporation (BSX) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
