The deal makes a company like Cardiovascular Systems (NSDQ:CSII) a less attractive acquisition target, for the medtech titan, Wall Street analysts said today. Making matters worse, Boston Scientific may stand to turn its newly acquired JetStream atherectomy device into a major concern.
"In BSX’s hands, it is possible that JetStream becomes a more formidable number 4 player in the high-growth atherectomy space given BSX’s ability to bundle within interventional cardiology and cardiology more broadly," Leerink Swann analyst Danielle Antalffy wrote in a note to investors.
Boston Scientific announced today that it nabbed Bayer AG’s Minneapolis-area interventional unit, taking with it a suite of atherectomy and thrombectomy devices and about 350 workers. The division posted sales of roughly $120 million last year, Boston Scientific said.
CSII shares dropped 4.9% by early afternoon, trading at $25.99 apiece as of about 1:35 p.m. EST. The stock has lost more than 23% since the start of the year.
New of the acquisition didn’t do much to push BSX’s shares either. The stock was down about 1% today. BSX shares have started to settle down after many months of dramatic inclines. The stock has lost about 5.3% over the last month and 4.9% over the last 3 months, but is still trading about 37% higher over the last 12 months.