Boston Scientific Mulls Billion-Dollar Snake Venom Sale -Report
Medical devices giant Boston Scientific Corp. (BSX) is reportedly considering selling its specialty pharmaceutical business focused on snake venom treatments.
According to people with knowledge of the matter, the deal could be worth as much as $1 billion, reports Bloomberg. The publisher’s sources- who asked not to be identified- said that BSX is currently working with advisers on the potential sale. A final decision has yet to be made.
Boston Scientific snapped up the niche business as part of its $4 billion BTG acquisition in 2019. Under the terms of the transaction, holders of BTG common shares received 840 pence in cash per share.
BTG’s products include CroFab, a sheep-derived antivenin for crotalid envenomation, which occurs from the bite of snakes from the Crotalidae family, such as the rattle snake and copperhead snake.
It is the only treatment approved by the US regulatory body for all North American pit viper snakebites in adult and pediatric patients- and according to BSX it has already been used to treated over 50,000 patients since its 2000 approval.
Shares in BSX traded up 2% in Tuesday’s trading, taking the stock’s year-to-date loss to 22%. Nonetheless analysts have a bullish Strong Buy consensus on Boston Scientific’s outlook, with an average analyst price target of $44 (25% upside potential). (See Boston Scientific stock analysis on TipRanks).
“BSX’s solid execution on its pipeline and acquisitions have delivered best in class sales growth and helped to diversify the company from slower end markets” commented Oppenheimer analyst Steven Lichtman recently. But he added: “Near-term pressure will be felt down the P&L from COVID-19, though BSX has offsets in its underlying pipeline and high out-patient mix.”
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