Facade at headquarters of pharmaceutical and medical device manufacturing company Penumbra on Bay Farm Island, Alameda, California, July 9, 2018.<\/p>\n
Smith Collection | Gado | Archive Photos | Getty Images<\/p>\n
Boston Scientific<\/a> said on Thursday it will buy \u2060medtech firm Penumbra<\/a> in a deal valued at about $14.5 billion to expand its portfolio of cardiovascular devices, in the largest acquisition by the Massachusetts-based company in two decades.<\/p>\n The \u200cacquisition \u200cis the first major healthcare deal of \u200b2026, a year analysts and industry insiders expect will bring a wave of mega-mergers as companies take advantage of a more favourable regulatory backdrop and easing interest rates to bolster their portfolios.<\/p>\n Medtech \u2060firms have been expanding their cardiovascular franchise through internal R&D and acquisitions, as an aging population and rising prevalence of heart conditions lift demand in the segment.<\/p>\n Boston, which recently raised its annual profit forecast on strong demand for its heart devices, said the inclusion of Penumbra’s products will help it improve “revenue and margins over time”.<\/p>\n Penumbra is expected to bring in about $1.4 billion in sales in 2025.<\/p>\n Shares of the company jumped over 13% to $354.70 in premarket trading on the deal news.<\/p>\n Boston Scientific made a string of smaller deals last year, including buying the remaining stake in privately held Nalu Medical to strengthen its pain-management business and Bolt Medical \u200dto bolster its cardiac pipeline.<\/p>\n The acquisition of Penumbra will give Boston \u200caccess to the California-headquartered firm’s comprehensive portfolio that includes differentiated devices \u2060to treat conditions such as pulmonary embolism, stroke, deep vein thrombosis, acute limb ischemia, heart attack and aneurysms.<\/p>\n The deal values Penumbra \u200dat $374 per share, a premium of about 19.3% to its last close. Penumbra shareholders can elect to receive either $374 in cash or 3.8721 Boston Scientific shares, with the deal paid about 73% in cash and 27% in stock.<\/p>\n The transaction is expected to be completed in 2026, \u2060and Penumbra’s chairman and chief executive officer, \u200cAdam Elsesser, will join Boston’s board upon deal close.<\/p>\n","protected":false},"excerpt":{"rendered":"Facade at headquarters of pharmaceutical and medical device manufacturing company Penumbra on Bay Farm Island, Alameda, California, July…\n","protected":false},"author":2,"featured_media":239504,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[2580,5576,56620,357,163,2579,521,85,46,129129],"class_list":{"0":"post-239503","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-healthcare","8":"tag-biotech-and-pharmaceuticals","9":"tag-boston","10":"tag-boston-scientific-corp","11":"tag-business-news","12":"tag-health","13":"tag-health-care-industry","14":"tag-healthcare","15":"tag-il","16":"tag-israel","17":"tag-penumbra-inc"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/239503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=239503"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/239503\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/239504"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=239503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=239503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=239503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}