Is Stryker Trying to Strike a Deal with Boston Scientific?

The Wall Street Journal shook things up in the medical device industry Monday morning with a report that Stryker has approached Boston Scientific with a takeover bid. Boston Scientific shares soared nearly 10% after the news broke, but Stryker's shares dropped about 3%. The report cited sources familiar with the deal but it is unclear if Boston Scientific is receptive to the bid. If the deal actually happens, it would easily be the largest M&A the industry has seen so far this year and would create a formidable medical device company with a combined value of more than $110 billion. A spokesperson for Boston Scientific told MD+DI that, as a matter of practice, the company does not comment on rumors or speculation. Stryker has not yet responded to MD+DI's request for comment on this story. From Stryker's perspective, a deal of this size certainly seems possible and in line with comments the company's executives have made during recent earnings calls. During the first-quarter earnings call in April, for example, CEO Kevin Lobo touted the successful integration of acquisitions like Entellus Medical, which closed in March. That deal, valued at about $662 million ($24 a share) bolstered Stryker's presence in the ear, nose, and throat market. Lobo said M&A has become a core strength for the company in both identifying attractive targets and executing on deals after they have closed. During that same call, Katherine Owen, vice president of strategy and investor relations ...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news