BSX Stock Rises More Than 2% Following EMcision Acquisition

On March 6, 2018, Boston Scientific (BSX) stock closed at $27.41, higher than its 50-day moving average of $27.15 and lower than its 200-day moving average of $27.52. As of March 7, 2018, Boston Scientific’s 52-week high was $29.93 on October 23, 2017, and its 52-week low was $24.02 on March 22, 2017.

On March 5, 2018, Boston Scientific announced the acquisition of EMcision, a London-based company with an innovative portfolio of endoscopy devices. The stock rose ~2.4% that day. The details of the deal have been discussed previously in this series. Over the last month, the stock has risen ~3%. On February 1, 2018, Boston Scientific released its 4Q17 and 2017 earnings results, which exceeded analysts’ estimates. However, the stock fell ~1%. In December, BSX stock rose following key product launches and rating upgrades. In November, the stock had fallen following news of its Lotus relaunch being delayed.

Over the last year, BSX stock has risen~9.7%, and year-to-date, it has risen ~10.6%. However, over the past six months, the stock has fallen ~3%.

BSX stock has underperformed both the medical device industry and the market over the last year. The iShares US Medical Devices ETF (IHI), which represents the US medical device industry, had returned ~23% over the last year as of March 6, 2018, and the S&P 500 had risen ~15%. Peers Abbott Laboratories (ABT), Medtronic (MDT), and Edwards Lifesciences (EW) have returned 10.7%, -1.8%, and 49%, respectively.