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How Acquisitions and Recalls May Impact Boston Scientific's 2017

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Part 2
How Acquisitions and Recalls May Impact Boston Scientific's 2017 PART 2 OF 6

Boston Scientific Completes Its Acquisition of Symetis

Deal overview

On May 17, 2017, Boston Scientific (BSX) announced the completion of its acquisition of Symetis, which it announced on March 30, 2017. The deal was valued at $435 million in cash. As discussed in Inside Boston Scientific’s Acquisition of Symetis: The Must-Know Details, the deal is expected to be earnings accretive in 2018 and thereafter.

Symetis, a Switzerland-based, privately held company, manufactures minimally-invasive TAVI (transcatheter aortic valve implantation) devices. The business will be part of Boston Scientific’s interventional cardiology business after the acquisition.

Boston Scientific Completes Its Acquisition of Symetis

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Post-acquisition plans

Boston Scientific is set to commence with the sale of Symetis’s Accurate TA and Accurate neo/TF valve systems in markets outside the United States. The company now has two complementary TAVI platforms: Lotus and Accurate. The acquisition has strongly positioned it for the advancement of its structural heart solutions business.

Accurate valves, similar to BSX’s Lotus valve systems, are being developed for the treatment of high-risk patients suffering from SSAS (severe and symptomatic aortic stenosis).

However, the sale of Boston Scientific’s Lotus heart valves has been suspended temporarily due to certain locking problems with the device delivery mechanism. The company announced the recall of its Lotus range of devices in February 2017. We’ll discuss this development and its impact on the company’s performance in 2017 in detail in the next article.

Some of Boston Scientific’s major competitors in the structural heart devices space include Medtronic (MDT), Edwards Lifesciences (EW), and Abbott Laboratories (ABT). The iShares Edge MSCI Minimum Volatility USA ETF (USMV) invests ~0.39% of its holdings in Boston Scientific.

Next, let’s discuss Boston Scientific’s recent recall of Lotus devices.

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