Boston Scientific Announces Strategic Investment to Acquire Majority Stake in Acotec Scientific Holdings

Marlborough, Massachusetts, USADecember 12, 2022PR Newswire -- Boston Scientific Corporation (NYSE: BSX) and Acotec Medical Holdings Limited ("Acotec", 6669.HK)AnnouncementBoston Scientific will launch a partial offer to acquire a majority stake of up to 65% in Acotec, a Chinese medical technology company that provides solutions for various interventional procedures. The proposed price for the transaction is HK$20 per share, and at the current exchange rate, the cash consideration for the 65% stake is approximately US$523 million.^[1]。

Acotec is a leading company in the field of innovative medical solutions, offering a product portfolio that includes Drug-Coated Balloons (DCBs) for the treatment of vascular and other diseases. In 2016, the company launched the first peripheral DCB product in China after receiving approval from the National Medical Products Administration of China. Acotec's product portfolio also includes radiofrequency ablation systems, thrombus aspiration systems, and others.20A diverse portfolio of products across different fields and at various stages of development. During the 12 months ended June 30, 2022, Acotec achieved sales revenue of RMB 339 million (approximately USD 50 million), with a 25% year-over-year growth in the first half of 2022, following two consecutive years of robust double-digit growth.^[2]。

"Acotec is a highly profitable and fast-growing company with a strong product portfolio and innovative medical technologies in the pipeline. We believe this investment will bring more growth opportunities for both parties," said Art Butcher, Executive Vice President of Boston Scientific Corporation and President of the MedSurg and Asia-Pacific Group. "Upon completion of this partial offer, we expect to further expand our business presence in China while achieving the global commercialization of Acotec's products, providing doctors and patients with a powerful and complementary product portfolio."

Boston Scientific expects this transaction to have no material impact on its adjusted earnings per share for 2023. The increase or offset in GAAP earnings per share will be smaller, depending on the situation, due to amortization expenses and acquisition-related net costs.

The expected completion time of this transaction is the first half of 2023, with the specific timing depending on the acceptance and approval level of acotec's shareholders towards the offer, as well as other conditions outlined in relevant documents.

For more information about this transaction, please visit Boston Scientific.Investor Relations Website"Activities and Introduction" Section.

About Boston Scientific

Boston Scientific Corporation is committed to innovating for life. We are dedicated to improving the lives of patients worldwide through innovative medical solutions. For over forty years, Boston Scientific has consistently led the development of the global medical technology industry by delivering a wide range of high-performance medical solutions that meet critical patient needs for treatment while reducing healthcare costs. For more detailed information, please visit the company's website.www.bostonscientific.com。

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 can be identified by words such as "anticipate," "expect," "forecast," "believe," "plan," "estimate," "intend," and similar terms. These forward-looking statements are based on our views, assumptions, and estimates derived from the information available to us at that time, and are not guarantees of future events or performance. These forward-looking statements include our statements regarding the financial and commercial impact of this transaction, our business plans, product performance, and influence, among others. If our underlying assumptions prove to be incorrect, or if certain risks or uncertainties materialize, actual results may differ materially from the expectations and predictions expressed or implied in our forward-looking statements. These factors have affected, and may continue to affect (in conjunction with other factors), our ability to execute our business strategy, and could cause actual results to differ significantly from the expected results outlined in this press release. Therefore, we caution readers against placing undue reliance on any of our forward-looking statements.

Factors that may lead to such differences include: future economic conditions in the U.S. and globally, political conditions, competitive landscape, compensation and regulatory environments; introduction of new products; anticipated number of procedures; completion of acquisitions and business integration; demographic trends; intellectual property; litigation; financial market conditions; execution and impact of our business strategies (including cost-saving and growth initiatives); future business decisions by us and our competitors; potential inability to meet the conditions for completing proposed transactions, including receiving required regulatory approvals and clearances; and the completion of proposed transactions may not occur or could be delayed. New risks and uncertainties may arise at any time and are difficult to predict, including those risks and uncertainties that have emerged or may be exacerbated due to the COVID-19 pandemic. All these factors are difficult or impossible to predict accurately, and many of them are beyond our control. For a detailed list and description of significant risks and uncertainties that may affect our future business, please refer to Part I, Item 1A, “Risk Factors,” in our latest Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. This section may be updated in Part II, Item 1A, “Risk Factors,” of our Quarterly Reports on Form 10-Q that have been or will be filed subsequently. We have no intention or obligation to publicly update or revise any forward-looking statements to reflect changes, whether due to changes in our expectations or changes in events, conditions, or circumstances underlying those expectations, or changes that could cause actual results to differ from the results expressed in the forward-looking statements. This cautionary statement applies to all forward-looking statements in this document.

[1]. Exchange rate of USD to HKD as of December 9, 2022: 7.7838, based on Factset data analysis.
[2]. The average exchange rate of USD to CNY for the 12 months ending June 30, 2022 was 6.4553, based on Factset data analysis.