Boston Scientific Closes BTG Buyout, PI Arm to Get a Boost

Boston Scientific Corporation BSX completed its $4.2-billion colossal acquisition of BTG plc within the expected time of closing. The acquisition is expected to considerably boost Boston Scientific's Peripheral Intervention (PI) portfolio.

BTG Acquisition at a Glance

BTG has three primary businesses, of which its Interventional Medicine portfolio, including various PI product lines, is the largest. The interventional oncology suite encompasses the TheraSphere Y-90 radiotherapy microspheres and the GALIL cryoablation system, which are used to treat liver, kidney and other cancer patients.

Furthermore, BTG's Interventional Medicine business also boasts a vascular portfolio, including filters, crossing catheters, microfoam and the EKOS Endovascular System.

 

 

 

 

 

In addition to BTG’s Interventional Medicine product lines, it also has a specialty pharmaceutical business, which includes acute care antidotes to treat overexposure to certain medications and toxins, and a licensing business that receives royalties related to BTG intellectual property and product license agreements.

A Strategic Deal

With the completion of BTG acquisition, the consolidated company now expects to gain an enhanced category leadership position in interventional oncology, arterial and venous therapies.

Business Selloff to Make Way for BTG

In its effort to accommodate the acquisition of BTG, Boston Scientific recently offloaded its certain non-prior businesses. The company has lately sold its portfolio of drug-loadable microsphere and bland embolic bead products to Varian Medical Systems for $90 million.

In addition, Boston Scientific is also initiating a process to explore the divestiture of the royalty stream associated with BTG's Zytiga licensing arrangements and expects to complete this divestiture by the end of 2019.

Price Performance

Shares of Boston Scientific have outperformed its industry in a year's time. The stock has returned 17.8% compared with the industry's 0.8% increase.

Zacks Rank & Stocks to Consider

Boston Scientific currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical space are Medtronic MDT, Baxter BAX and NuVasive NUVA, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Medtronic’s long-term earnings growth rate is projected at 7.1%.

Baxter’s long-term earnings growth rate is projected at 12.8%.

NuVasive’s long-term earnings growth rate is expected to be 12.8%.

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