Dive Brief:
- Boston Scientific has resubmitted a federal filing for its proposed acquisition of Silk Road Medical to provide more time for regulatory review.
- On Aug. 9, Boston Scientific decided to withdraw and refile its Premerger Notification Report Form after both companies submitted their respective merger filings on July 10, according to a Securities and Exchange Commission filing from Silk Road. Boston Scientific withdrew the filing to give the Federal Trade Commission “additional time to review the proposed transaction,” according to the document.
- A Boston Scientific spokesperson told MedTech Dive that the company “refiled our Hart-Scott-Rodino form with the FTC.” The spokesperson, in an emailed statement, added that Boston Scientific still expects to close the transaction in the second half of 2024.
Dive Insight:
Boston Scientific has been one of the medical technology industry’s biggest spenders this year, putting up money for two major acquisitions in the first half alone. Boston Scientific proposed to buy Axonics for $3.7 billion in January and Silk Road for $1.26 billion in June. However, neither transaction has closed.
In April, Boston Scientific delayed the timeline for completing the Axonics deal until the second half of 2024 after the FTC requested more information from both companies.
While Boston Scientific still plans to close its Silk Road acquisition in the second half, in line with expectations in the deal announcement, Silk Road’s SEC filing states that once the merger filing is resubmitted, “a new 30-day waiting period under the [Hart-Scott-Rodino Antitrust Improvements Act of 1976] will commence … unless such period is terminated earlier or extended.”
Silk Road’s SEC filing, dated Aug. 9, stated that Boston Scientific planned to resubmit its merger filing on Aug. 13. The Boston Scientific spokesperson declined to comment on the date the company refiled.
Silk Road makes devices for a minimally invasive procedure to treat patients with carotid artery disease, when blood vessels in the neck become blocked with plaque, slowing blood flow and potentially causing a stroke.
Boston Scientific announced in June that it would buy Silk Road for $1.26 billion, or $27.50 per share, representing roughly a 38% premium at the time. Silk Road expects a revenue range of from $194 million to $198 million in 2024.
While Boston Scientific is still waiting to close both deals — it’s been seven months since the Axonics deal was announced and nearly two months for Silk Road — Johnson & Johnson closed its $13.1 billion purchase of Shockwave Medical less than two months after the announcement.
Boston Scientific CEO Mike Mahoney did not provide investors with a detailed update on the Axonics deal in a July earnings call but reaffirmed that the acquisition was expected to close in the second half of this year.
