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Fly News Breaks for July 3, 2019
BSX, VAR
Jul 3, 2019 | 07:34 EDT
Credit Suisse analyst Matt Miksic notes that Boston Scientific (BSX) has agreed to sell its portfolio of drug-loadable microspheres and "bland" embolic bead products for treating arteriovenous malformations and hyper vascular tumors to Varian (VAR) for $90M.The analyst does not view it as surprising, and reiterates an Outperform rating and $45 target on Boston Scientific's shares.
News For BSX;VAR From the Last 2 Days
BSX
Aug 19, 2019 | 06:03 EDT
Boston Scientific announced the completion of its acquisition of BTG pursuant to the previously announced scheme of arrangement. Upon the effectiveness of the scheme of arrangement, BTG became a wholly-owned subsidiary of Boston Scientific, and BTG shares no longer trade on the London Stock Exchange. Under the terms of the previously announced transaction, holders of BTG common shares will receive 840 pence in cash per share. Boston Scientific expects to complete the previously announced sale of its global embolic microspheres portfolio - comprised of Embozene, Embozene TANDEM and ONCOZENE brands - to Varian Medical Systems, Inc. in due course, a transaction entered into in connection with obtaining the antitrust clearances required to complete the BTG transaction. In addition, the company is initiating a process to explore the divestiture of the royalty stream associated with BTG's Zytiga licensing arrangements and anticipates closing this divestiture by the end of 2019. The transaction is expected to be immaterial to adjusted earnings per share in 2019 as a result of the BTG transaction closing later than originally anticipated, the divestiture of the Boston Scientific embolic microspheres portfolio, and the treatment of the licensing business as an asset for accounting purposes and its intended divestiture. The transaction is expected to be 4c-5c accretive in 2020 on an adjusted basis, and increasingly accretive thereafter. On a GAAP basis, the transaction is expected to be less accretive, or more dilutive as the case may be, due to amortization expense and acquisition-related net charges.