Boston Scientific has announced that it has entered into a definitive agreement to acquire Silk Road Medical, a medical device company involved in producing products to be deployed during transcarotid artery revascularisation (TCAR). The purchase price is US$27.50 per share, reflecting an enterprise value of approximately US$1.16 billion.
“The TCAR platform developed by Silk Road Medical is a notable advancement in the field of vascular medicine, which has revolutionised stroke prevention and the treatment of carotid artery disease,” said Cat Jennings, president, vascular, peripheral interventions, at Boston Scientific. “We believe the addition of this clinically differentiated technology to our vascular portfolio demonstrates our continued commitment to provide meaningful innovation for physicians who care for patients with peripheral vascular disease.”
The TCAR system gained US Food and Drug Administration (FDA) approval in 2015 and is supported by several clinical studies demonstrating a reduced risk of stroke and other complications associated with traditional open surgery. The products sold by Silk Road Medical are the only devices commercially available for use during the TCAR procedure.
Boston Scientific expects to complete the transaction in the second half of 2024, subject to customary closing conditions. Silk Road Medical has guided to net revenue of approximately US$194–198 million in 2024, representing 10–12% growth over the prior fiscal year. The impact to Boston Scientific adjusted earnings per share is expected to be immaterial in 2024 and 2025, and accretive thereafter.
