BSX Stock Set to Gain From the New Agreement to Acquire SoniVie Ltd.

Boston Scientific, Inc. BSX has signed a definitive agreement to acquire SoniVie Ltd., a privately held medical device company that developed the TIVUS Intravascular Ultrasound System. The company already holds an approximately 10% stake in SoniVie. Hence, it will pay nearly $360 million upfront to acquire the remaining 90%, with up to $180 million contingent on regulatory milestones.The transaction is expected to close in the first half of 2025, subject to customary closing conditions.Potential Trend of BSX Stock Following the NewsAfter yesterday’s announcement, BSX shares rose 1% to finish the session at $104.87. Renal denervation has emerged as a promising medical advancement in the hypertension space, supported by strong clinical evidence and ongoing research. The latest development enhances Boston Scientific’s interventional cardiology therapy offerings with a minimally invasive therapy for patients with hypertension and also provides the opportunity for future innovation in this field. We expect the market sentiment surrounding BSX stock to remain positive, driven by this news.At present, Boston Scientific has a market capitalization of $153.17 billion. The Zacks Consensus Estimate for the company’s 2025 earnings per share (EPS) currently stands at $2.85, indicating a 13.6% year-over-year improvement. In the trailing four quarters, it delivered an average earnings surprise of 8.3%. Rationale Behind BSX’s New Deal and Financial ImpactHypertension is a leading risk factor for cardiovascular disease closely associated with the overactivity of the sympathetic nervous system. While treatment lowers cardiovascular mortality and the risk of stroke, heart attack or heart failure, lifestyle modifications and anti-hypertensive medications are often inadequate in controlling high blood pressure (BP). Ultrasound energy can penetrate the tissue more deeply than radiofrequency energy, potentially resulting in faster procedures with effective nerve ablation.Image Source: Zacks Investment ResearchIn this regard, SoniVie’s investigational TIVUS system is designed to perform RDN (renal artery denervation) that can help reduce activity in the kidney's renal nerves and serve as an alternative or adjunctive therapy to these medications to help regulate BP. In 2024, the company announced positive efficacy data from an IDE pilot trial of the TIVUS system in the United States and Israel. Additionally, it recently initiated the THRIVE global IDE pivotal trial of the device.Boston Scientific expects the transaction to be slightly dilutive to its adjusted EPS in 2025, offset by internal cost efficiencies and trade-offs. On a GAAP basis, a higher dilution is expected from amortization expenses and acquisition-related charges, except for a one-time gain from the company’s previously held equity interest in SoniVie.Industry Prospects Favor BSXPer a research report, the global renal denervation market was valued at $340.4 million in 2023 and is expected to witness a compound annual rate of 40.2% through 2030. Technological advancements in renal denervation devices have played a crucial role in market growth. Additionally, companies are heavily invested in clinical trials to validate the efficacy and safety of renal denervation devices, propelling the market’s expansion.More Updates From BSXIn January 2025, Boston Scientific inked an acquisition agreement with Bolt Medical, Inc. to expand its cardiovascular portfolio with a complementary and differentiated calcium modification platform, furthering its strategy to address coronary and peripheral disease. Already owning 26% of the company, Boston Scientific will pay approximately $443 million for the remaining stake, with up to $221 million tied to certain regulatory milestones.BSX Stock Price PerformanceIn the past year, Boston Scientific shares have risen 55.5 % compared with the industry’s 11.8% growth.BSX’s Zacks Rank and Other Key PicksBoston Scientific currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader medical space are Hims & Hers Health HIMS, Inspira Medical Systems INSP and Cardinal Health CAH. Each of these carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Estimates for Hims & Hers Health’s 2025 earnings per share have jumped 34.6% to 70 cents in the past 30 days. Shares of the company have surged 178.6% in the past year against the industry’s 9.1% fall. HIMS’ earnings surpassed estimates in two of the trailing four quarters, matched in one and missed on another occasion, the average surprise being 40.4%.Inspira shares have dipped 0.5% in the past year. Estimates for the company’s 2025 earnings per share have increased 6.4% to $2.16 in the past 30 days. INSP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 332.5%. In the last reported quarter, it posted an earnings surprise of 55.4%.Estimates for Cardinal Health’s fiscal 2025 earnings per share have increased 14.7% to $7.94 in the past 30 days. Shares of the company have jumped 15.2% in the past year against the industry’s 2.4% fall. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 10.3%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Cardinal Health, Inc. (CAH): Free Stock Analysis Report Inspire Medical Systems, Inc. (INSP): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks