Boston Scientific Weaves a $1.16B Acquisition

Boston Scientific's road to transcarotid artery revascularization (TCAR) has been paved by Silk Road Medical – in the form of a $1.16 billion acquisition.

Silk Road Medical has long been considered one of the 25 Most Attractive Medtech M&A Targets for its innovative platform of products designed to prevent stroke in patients with carotid artery disease through the TCAR procedure.

TCAR combines the surgical principles of neuroprotection with minimally invasive endovascular techniques to treat blockages in the carotid artery at risk for causing a stroke.

Marie Thibault, a medtech analyst at BTIG, noted in a report Tuesday that her team views the deal as a tuck-in for Boston Scientific that will help expand its peripheral interventions segment by reaching existing physician call points.

"We think [Boston Scientific] can use its resources to increase TCAR penetration within the U.S., launch new products, and expand into new markets, including Japan and China, while continuing to improve the business' margins," Thibault wrote. "While there are several companies that may have interest in TCAR, we think the transaction price represents a reasonable valuation for [Silk Medical] given anticipated sales growth rate and EBITDA margin profile."

Treatment of carotid artery disease includes medication, stents, or surgery to reduce the risk of stroke. The TCAR procedure involves accessing the carotid artery through a small incision in the neck and temporarily reversing blood flow away from the brain to prevent plaque from dislodging and causing a stroke. A stent is then placed at the site of the blockage for long-term plaque stabilization and future stroke prevention.

FDA approved the TCAR system in 2015 and the technique is backed by clinical data demonstrating a reduced risk of stroke and other complications associated with traditional open surgery.

"The TCAR platform developed by Silk Road Medical is a notable advancement in the field of vascular medicine, which has revolutionized stroke prevention and the treatment of carotid artery disease," said Cat Jennings, president of Boston Scientific's vascular and peripheral interventions business.

The companies expect to close the acquisition in the second half of 2024, assuming stockholder and applicable regulatory approvals.