Boston Scientific Corporation BSX has entered into a definitive agreement to acquire Intera Oncology Inc., a Boston-based life science company. The acquisition expands the company’s interventional oncology offerings with the Intera 3000 Hepatic Artery Infusion Pump and floxuridine — a chemotherapy drug — both of which are approved by the FDA.
The transaction is expected to close in the first half of 2025, subject to closing conditions. Boston Scientific expects the deal to have an immaterial impact on adjusted earnings per share in 2025 but will be more dilutive on a GAAP basis due to acquisition-related net charges and amortization expenses.
Predicting BSX Stock Movement Following the News
After the announcement yesterday, shares of BSX dipped 0.8%, finishing at $89.25. On a promising note, the company’s recent acquisitions have expanded its portfolio with several offerings, which are poised to drive long-term revenue growth. Hence, we expect the latest development to positively boost the market sentiment toward BSX stock.
Boston Scientific currently has a market capitalization of $128.21 billion. The company has an estimated 2024 earnings growth of 20% compared to the industry’s 11.4% growth. It delivered an earnings beat of 8.29%, on average, in the trailing four quarters.
Significance of Boston Scientific’s Latest Buyout
In the United States, approximately 1.4 million people are living with primary colorectal cancer, with more than 150,000 new cases diagnosed each year. Among these patients, nearly 25% experience cancer spreading to the liver during their illness. Interest in HAI (hepatic artery infusion) therapy is growing in the oncology community due to improved techniques, positive clinical results and ongoing trials.
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The Intera 3000 pump, the only constant-flow implantable pump for HAI therapy approved in the United States, treats liver tumors caused by metastatic colorectal cancer. The pump is implanted under the skin with a connected catheter in the hepatic artery, supplying oxygenated blood to the liver. It then provides a continuous flow of floxuridine directly into the liver to treat tumors that have metastasized, most commonly from the colon. The safety and effectiveness of the Intera 3000 pump are supported by data from randomized controlled trials demonstrating the clinical benefits of HAI therapy for patients with unresectable colorectal metastases to the liver, both prior to and following resection.
Boston Scientific expects the acquisition will enhance its ability to provide a comprehensive set of solutions to physicians and their patients, targeting both primary and metastatic forms of liver cancer.
Industry Prospects Favoring BSX Stock
Per a research report, the global sacral nerve stimulation market was valued at $1.6 billion in 2023 and is expected to witness a compound annual growth rate of 11.5% by 2030. The market growth is attributed to the increasing rates of overactive bladder conditions and the incidence of urge incontinence, including UTIs.
More Updates From Boston Scientific
Recently, Boston Scientific completed the acquisition of Axonics, Inc., expanding into sacral neuromodulation, a high-growth adjacency for its Urology business. The addition brings a comprehensive portfolio of tailored treatment options for patients, based on their life stage and incontinence severity.
BSX Stock Price Performance
In the past year, Boston Scientific shares have gained 60.2% compared with the industry’s growth of 20.5%.
BSX’s Zacks Rank and Key Picks
Boston Scientific currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Penumbra PEN, Haemonetics HAE and Globus Medical GMED, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Penumbra’s shares have gained 5.9% in the past year. Estimates for the company’s 2024 earnings per share have jumped 8.1% to $2.79 in the past 30 days. PEN’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.54%. In the last reported quarter, it posted an earnings surprise of 23.19%.
Estimates for Haemonetics’ fiscal 2025 earnings per share have jumped 0.4% to $4.59 in the past 30 days. Shares of the company have rallied 7.6% in the past year compared with the industry’s growth of 21.5%. HAE’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.82%. In the last reported quarter, it delivered an earnings surprise of 2.75%.
Estimates for Globus Medical’s 2024 earnings per share have increased 3.9%% to $2.95 in the past 30 days. Shares of the company have surged 83.9% in the past year compared with the industry’s 15.1% rise. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%. In the last reported quarter, it delivered an earnings surprise of 27.69%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
Globus Medical, Inc. (GMED) : Free Stock Analysis Report
Penumbra, Inc. (PEN) : Free Stock Analysis Report
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