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Stryker Declines Buyout Talks with Boston Scientific

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Stryker isn’t acquiring Boston Scientific

On June 13, Stryker (SYK) said in a regulatory filing that it’s not in discussions with Boston Scientific (BSX) related to its acquisition. The company released the statement following rumors of a potential acquisition offer made by Stryker to Boston Scientific on June 11, as we reported in Boston Scientific Surges on Rumors of Takeover Bid from Stryker.

In the filing, the company stated, “While it is Stryker Corporation’s (Stryker) longstanding practice not to comment on these matters, today Stryker issued the following statement in response to the market speculation about a proposal to acquire Boston Scientific Corporation: ‘Stryker is not in discussions with Boston Scientific Corporation regarding a potential acquisition.'”

After Stryker’s statement, BSX stock fell ~6.3% after rising ~6.0% in the last two days on acquisition speculations. Stryker’s stock price rose ~2.5% after it registered a decline of ~9.2% over the last two days.

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Healthcare industry consolidation leading to several big-ticket M&As

Because the healthcare industry is shifting toward value-based models, pharmaceutical and medical device firms are increasingly looking for acquisitions that can help expand their product portfolios and provide flexibility to improve efficiency and trim costs. Another key factor is the total cost of care.

Several recent industry deals include the acquisition of St. Jude Medical by Abbott Laboratories (ABT), which also acquired Alere in fiscal 2017. Becton Dickinson’s (BDX) acquisition of C.R. Bard was another significant deal in fiscal 2017.

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