Boston Scientific Corporation, a biomedical/biotechnology engineering firm and multinational manufacturer of medical devices, has agreed to acquire Apollo Endosurgery in a $615 million deal.
Apollo Endosurgery is known for manufacturing medical devices used during endoluminal surgery (ELS) procedures to close gastrointestinal defects, manage gastrointestinal complications and aid in weight loss for patients suffering from obesity. The surgery type is less invasive compared to open and laparoscopic surgery for patients with gastrointestinal diseases or morbid obesity. ELS also has the potential for quicker recovery and fewer complications.
Under terms of the deal, Boston Scientific will pay $10 per share to acquire Apollo Endosurgery, well above the company’s previous day’s close of $6 per share, according to Market Watch. Upon news of the acquisition, Apollo’s share price soared 67% on Tues., Nov. 29.
The acquisition comes at a time when the healthcare industry continues to see consolidation across verticals. However, economic headwinds in the second half of 2022, including record inflation, rising costs, staffing shortages, supply constraints and more, impacted healthcare mergers and acquisition activity. The move by Boston Scientific also comes after it made another acquisition earlier this year, purchasing Obsidio, a South Carolina-based medical device company that developed a new hydrogel material for the embolization of blood vessels.
Apollo Endosurgery is expected to report $76 million in revenue for 2022, with growth of its endoscopic suturing system franchise, including the OverStitch™ Endoscopic Suturing System, OverStitch Sx™ Endoscopic Suturing System and X-Tack™ Endoscopic HeliX Tacking System. The company also recently received de novo clearance from the Food and Drug Administration (FDA) for the first devices authorized by the FDA for endoscopic sleeve gastroplasty (ESG) and endoscopic bariatric revision procedures––Apollo ESG™, Apollo ESG Sx™, Apollo REVISE™ and Apollo REVISE Sx™ Systems.
"Endoluminal surgery is an emerging field and a core focus for our Endoscopy business," Mike Jones, senior vice president and president of endoscopy at Boston Scientific, said in a statement. "We intend to expand our global capabilities in ELS with the differentiated innovation that Apollo Endosurgery offers, and we will continue to focus on procedural adoption as well as professional education in this exciting space. This acquisition also enables us to enter a new adjacency–the endobariatric market––and deliver strong, continued growth across our business."
Boston Scientific expects to complete the deal in the first half of 2023, pending customary closing conditions. And the company expects the acquisition to be accretive to its earnings per share after 2023.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."