Boston Scientific to Acquire BTG for $4.24 Billion to Expand Interventional Medicine Portfolio

VCBeat (WeChat ID: vcbeat) has learned that on November 20, 2018, U.S. local time, Boston Scientific Corporation (NYSE: BSX) announced the acquisition of UK-based medical device manufacturer BTG for $4.24 billion (approximately £3.3 billion) to strengthen its interventional medicine product portfolio.

The acquisition price per share is approximately £8.40, representing a 36.6% premium over BTG’s closing price of £6.15 on Monday and a 51% premium over the stock’s 90-day volume-weighted average price. On Tuesday, BTG’s share price surged 35% to £8.32 upon the news, reaching its highest level since January 2015.

BTG, founded in 1991 and headquartered in London, UK, is an international medical device manufacturer and pharmaceutical company dedicated to developing commercialized medical products for critical care, oncology, neurology, and other diseases. BTG’s largest manufacturing division is primarily responsible for producing medical devices related to oncology and vascular diseases. Another area of expertise for the company is developing medications for treating drug overdoses and counteracting rattlesnake bites. In recent years, however, the company has shifted its focus to the interventional medicine sector, mainly developing medical products for drug delivery.

Boston Scientific expressed optimism about BTG’s rapid growth in the interventional medicine sector in recent years, stating that the acquisition would allow BTG’s portfolio of interventional medical products to serve as an extension of its category leadership strategy, thereby enhancing its capabilities in critical areas with significant unmet needs, such as cancer and pulmonary embolism. Last year, researchers initiated the first clinical trial of BTG’s drug-eluting beads, which are loaded with targeted anticancer agents and can be used to treat patients with primary liver cancer and metastatic colorectal cancer.

“By adding these therapies to our portfolio, we believe we will ultimately advance patient care in ways that neither company could achieve alone, while also enabling us to realize significant revenue and cost synergies and deliver strong returns for investors,” said Mike Mahoney, Chairman and Chief Executive Officer of Boston Scientific.

The transaction will be conducted through a combination of cash and debt, and is expected to be completed in the first half of 2019.

In recent years, Boston Scientific has embarked on an aggressive global acquisition spree to expand its business and product portfolio. Last month, it acquired Augmenix, a medical device company headquartered in Massachusetts, USA, for $600 million.

Boston Scientific (NYSE: BSX), founded in 1979 and headquartered in Massachusetts, is a leading innovator in medical solutions dedicated to improving the health of patients worldwide. Boston Scientific’s products and technologies are used to diagnose or treat a wide range of conditions, including those affecting the heart, digestive system, lungs, vasculature, urinary tract, women’s health, and chronic pain.

BTG, founded in 1991 and headquartered in London, UK, is an international medical device manufacturer and pharmaceutical company dedicated to developing commercialized medical products for critical care, oncology, neurology, and other diseases. In recent years, the company has shifted its focus to the field of interventional medicine, primarily developing devices for drug delivery.