Boston Scientific (BSX) New Buyout to Aid Kidney Stone Line

 | Sep 01, 2021 10:09PM ET

Boston Scientific Corporation (NYSE:BSX) BSX recently completed the acquisition of the global surgical business of energy-based medical solutions provider, Lumenis LTD from an affiliate of Baring Private Equity Asia (“BPEA”). This $1.07-billion acquisition, which was initiated in March 2021, is a major investment by Boston Scientific in the prospering space of kidney stone management.

BPEA will retain ownership of the Lumenis global aesthetics and ophthalmology businesses.

More on Lumenis/h3

Israel-based Lumenis’ surgical business includes premier laser systems, fibers, and accessories used for urology and otolaryngology procedures.

Lumenis’ urology portfolio is based on its proprietary MOSES technology, which has demonstrated differentiated clinical outcomes and efficiency in the management of patients with kidney stones.

Boston Scientific shares a 20-year long relationship with Lumenis and already offers the Lumenis urology laser portfolio in the United States and Japan through a distribution arrangement.

Strategic Significance of the Deal/h3

The acquisition will allow Boston Scientific to sell Lumenis’ lasers and fibers as well as the otolaryngology laser portfolio to several geographies including high-growth regions like China.

Post the integration, MOSES laser technology will be paired with Boston Scientific’s category-leading kidney stone management and benign prostatic hyperplasia offerings. This integration, per the company, will help enable the execution of its stone franchise strategy.

Boston Scientific is highly optimistic about achieving huge synergy benefits within its Urology and Pelvic Health business from the addition of Lumenis laser portfolio, employees, and surgical laser center of excellence.

The company expects the acquisition to expand its global footprint throughout Europe and Asia and accelerate the delivery of its already strong stone management product lines worldwide. Apart from top-line growth, it is also expected to contribute to Boston Scientific’s margins.

Financial Significance/h3

This transaction is expected to remain immaterial to Boston Scientific’s 2021 adjusted earnings per share (EPS), be approximately 2 cents accretive to 2022 adjusted EPS, and increase thereafter. On a GAAP basis, due to the amortization expense and acquisition-related net charges, this deal is expected to be dilutive in 2021 earnings and less dilutive or increasingly accretive thereafter.

Prospering Kidney Stone Management Market/h3

Data provided by Boston Scientific in March showed that globally, more than one in 10 adults develop kidney stones each year. Up to 50% of these patients develop a repeat stone within five years of the first occurrence.

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