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Boston Scientific Fell 3.51% on November 20

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Acquisition announcement

On November 20, Boston Scientific (BSX) issued a press release announcing its offer to acquire United Kingdom-based BTG for a total cash consideration of ~3.3 billion pounds. The company’s share price closed at $34.05 on November 20, which is 3.51% lower than its previous closing price.

BTG’s (BTGGF) share price reached $10.48, which is 27.62% higher than its previous closing price.

Based on its closing price on November 20, Boston Scientific witnessed returns of -7.12 % in the last week, -7.02% in the last month, and -1.22% in the last quarter. The company also witnessed returns of 11.79% in the last half year, 20.11% in the last year, and 37.35% year-to-date.

The above chart highlights the major medical technology products and pharmaceutical drugs that Boston Scientific’s portfolio will acquire through the BTG acquisition. The deal is expected to bolster Boston Scientific’s presence in the Peripheral Interventions market.

In Boston Scientific’s 2017 Research and Development Day presentation, the company estimated the size of the Peripheral Interventions market in the United States to be $5.7 billion in 2016. The company expects the market to grow at a compound annual growth rate of 6%–8% from 2016 to 2020.

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BTG’s performance

In the first half of 2019, ending in September 2018, BTG reported revenues of $495.7 million, which is 12% YoY (year-over-year) growth. The company reported product sales of $340.2 million and licensing revenues of $155.5 million, which is 10% and 18% YoY growth, respectively.

In the first half of 2019, BTG reported an adjusted operating profit of $178.5 million, which is 39% YoY growth. The company also reported an adjusted operating margin of 36%, which was an improvement by 700 basis points on a YoY basis.

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