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Plans to buy Bolt Medical, Inc., a developer of intravascular lithotripsy equipment for treating hardened coronary and peripheral artery disease, were announced by Boston Scientific Corporation (BSX, Financials). Along with further payments of up to $221 million linked to regulatory milestones, the agreement included an upfront payment of $443 million for the remaining 74% ownership Boston Scientific does not currently hold.
The purchase fits Boston Scientific's approach of using complimentary technologies to improve its cardiovascular portfolio. Using minimally invasive techniques, IVL treatment meets a major need for patients with complicated calcified artery disease, the business claimed.
The Bolt IVL system improves blood flow by using sophisticated laser-based technology to generate acoustic pressure waves that shatter calcium deposits in arteries. The business is seeking regulatory licenses in the U.S. and Europe; the system contains directed emitters for constant energy distribution.
Boston Scientific owns 26% of Bolt Medical and has been a strategic investor in the business from its founding in 2019. According to Lance Bates, senior vice president of Interventional Cardiology Therapies at Boston Scientific, the purchase will provide a stage for more creativity in treating calcified lesions.
Anticipated to conclude in the first half of 2025, the agreement is predicted to be very dilutive to Boston Scientific's adjusted earnings per share for the year. The corporation intends to mitigate the effect, nevertheless, via trade-offs and cost control. With amortization expenditures, the acquisition will be more dilutive on a GAAP basis save for a one-time gain connected to Bolt Medical's existing equity investment.
Promising results from recent clinical studies carried out by Bolt Medicalincluding the RESTORE ATK and RESTORE BTK investigationshas supported regulatory filings. In December 2024 the business also got U.S. Food and Drug Administration clearance to start a worldwide clinical study on its coronary system.
This article first appeared on GuruFocus.