Medical devices major Boston Scientific (NYSE:BSX) has agreed to acquire medical technology company Axonics (NASDAQ:AXNX) in a $3.7 billion deal. The announcement has sent Axonics shares nearly 22% higher in the early session today.
This strategic M&A deal is expected to boost BSX’s urology portfolio. Axonics’ product portfolio is targeted at fecal incontinence and overactive bladder (OAB) symptoms. In the U.S., nearly 30 million adults over the age of 40 have OAB symptoms, and 19 million adults have fecal incontinence. Axonics’ 2023 top line is expected to surge 34% to $366 million in 2023. The deal remains subject to closing conditions and is anticipated to close in the first half of this year.
Separately, BSX is scheduled to announce its fourth-quarter results on January 31. Analysts expect the company to generate an EPS of $0.51 on revenue of $3.59 billion for the quarter. In the comparable year-ago period, Boston Scientific’s EPS of $0.45 had lagged estimates by $0.02.
Is BSX a Good Stock to Buy?
The acquisition price of $71 per share has boosted Axonics shares to their highest level in nearly 15 months. Boston Scientific shares, too, are trending marginally higher today. Shares of the company have risen almost 27% over the past year. Overall, the Street has a Strong Buy consensus rating on Boston Scientific, and the average BSX price target of $63.33 points to a further 8.9% potential upside in the stock.
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