Biomedical firm Boston Scientific (BSX) is acquiring Penumbra (PEN), a maker of cardiovascular devices, for $14.5 billion U.S.
The purchase gives Boston Scientific access to Penumbra’s devices used to clear blood clots during minimally invasive heart procedures.
Management at Boston Scientific, who recently raised their annual profit forecast on strong demand for heart devices, said Penumbra’s products will improve revenue and margins.
Penumbra has developed a portfolio of devices to treat conditions ranging from pulmonary embolisms and strokes to deep vein thrombosis and aneurysms.
The acquisition values Penumbra at $374 U.S. per share, a premium of nearly 20% to its last closing price on Jan. 14.
Boston Scientific isn’t the only biomedical company that’s expanding its portfolio of cardiovascular treatments.
Several biomedical and biotechnology firms have grown their cardiovascular portfolios in recent years, driven by strong global demand.
Cardiovascular disease, which can lead to heart attacks and stroke, remains the number one cause of death worldwide.
Globally, an estimated 20 million people die from cardiovascular disease each year, according to the Institute for Health Metrics and Evaluation.
Boston Scientific’s purchase of Penumbra is expected to be completed this year.
BSX stock has declined 7% over the last 12 months to trade at $90 U.S. per share.
