Boston Scientific Closes Acquisition of Baylis Medical Company Inc.

Rhea-AI Summary

Boston Scientific Corporation (BSX) has finalized its acquisition of Baylis Medical Company for $1.75 billion. This strategic move aims to enhance BSX's position in the growing cardiology market by integrating Baylis's advanced access solutions with BSX's existing electrophysiology and structural heart offerings. The acquisition is expected to be accretive to adjusted earnings per share starting in 2022, with potential for increased accretion subsequently. However, GAAP earnings may initially reflect dilution due to related expenses.

Positive

• Acquisition strengthens position in high-growth cardiology markets.
• The deal allows integration of advanced access solutions with existing therapies.
• Expected accretion of one cent to adjusted earnings per share in 2022.

Negative

• Acquisition-related net charges may dilute GAAP earnings in 2022.
• Amortization expenses could impact financial results post-acquisition.

MARLBOROUGH, Mass., Feb. 15, 2022 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) today announced the close of its acquisition of Baylis Medical Company Inc., a company that offers advanced transseptal access solutions as well as guidewires, sheaths and dilators used to support catheter-based left-heart procedures.

"The close of this acquisition allows Boston Scientific to integrate the Baylis platforms with our existing electrophysiology and structural heart offerings, further strengthening our position within the highest growth cardiology markets," said Joe Fitzgerald, executive vice president and president, Cardiology, Boston Scientific. "We are now the only company to pair a comprehensive access portfolio with existing left-heart therapies such as left atrial appendage closure and atrial fibrillation ablation, providing physicians with a complete toolbox to treat patients with safety, efficacy and efficiency."

The transaction consists of an upfront payment of $1.75 billion, and is expected to be approximately one cent accretive to adjusted earnings per share in 2022 and increasingly accretive thereafter. On a GAAP basis, the transaction is expected to be less accretive, or dilutive, in 2022 and less dilutive or increasingly accretive, as the case may be, thereafter, due to amortization expense and acquisition-related net charges.

Additional information about this transaction is available on the Events and Presentations section of the Boston Scientific investor relations website.

About Boston Scientific
Boston Scientific transforms lives through innovative medical solutions that improve the health of patients around the world. As a global medical technology leader for more than 40 years, we advance science for life by providing a broad range of high performance solutions that address unmet patient needs and reduce the cost of healthcare. For more information, visit www.bostonscientific.com and connect on Twitter and Facebook.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend" and similar words.  These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance.  These forward-looking statements include, among other things, statements regarding our business plans, clinical trials and product performance and impact.  If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements.  These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release.  As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.

Factors that may cause such differences include, among other things: future economic, competitive, reimbursement and regulatory conditions; new product introductions; demographic trends; intellectual property; litigation; financial market conditions; and future business decisions made by us and our competitors.  All of these factors are difficult or impossible to predict accurately and many of them are beyond our control.  For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A – Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A – Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter.  We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements.  This cautionary statement is applicable to all forward-looking statements contained in this document.

CONTACTS:
Angela Mineo
Media Relations
(763) 955-8325 (office)
Angela.mineo@bsci.com  

Lauren Tengler
Investor Relations
(508) 683-4479
BSXInvestorRelations@bsci.com  

 

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SOURCE Boston Scientific Corporation

FAQ

What is the significance of Boston Scientific's acquisition of Baylis Medical?

The acquisition enhances BSX's capabilities in cardiology by integrating Baylis's advanced access solutions.

How much did Boston Scientific pay for Baylis Medical?

Boston Scientific acquired Baylis Medical for $1.75 billion.

When is the acquisition expected to positively impact Boston Scientific's earnings?

The acquisition is expected to be accretive to adjusted earnings per share beginning in 2022.

What are the potential financial impacts of the acquisition for BSX?

While adjusted earnings may increase, GAAP earnings could be diluted initially due to acquisition-related expenses.

How does this acquisition affect Boston Scientific's market position?

It strengthens BSX's position in the rapidly growing cardiology market by providing comprehensive treatment options.