Boston Scientific Corporation (NYSE:BSX) stock fell Thursday, while Penumbra, Inc. (NYSE:PEN) climbed, following news that the medical device giant agreed to acquire the thrombectomy specialist in a cash-and-stock deal.
The diverging reaction came as Penumbra also released stronger-than-expected preliminary fourth-quarter results, reinforcing investor optimism around its growth profile as Boston Scientific digests the near-term cost and dilution of the transaction.
Deal Terms
The transaction values Penumbra at $374 per share, representing a roughly $14.5 billion enterprise value. Penumbra shareholders may elect to receive cash or Boston Scientific stock, with proration resulting in approximately 73% cash and 27% equity consideration overall.
Boston Scientific CEO Mike Mahoney commented, “Penumbra is a well-established company with an experienced, high-performing team and this acquisition offers Boston Scientific an opportunity to enter new, fast-growing segments within the vascular space.”
Penumbra CEO Adam Elsesser stated that the company’s long-term focus on innovation for complex conditions aligns with Boston Scientific’s strategy, and confirmed plans to receive Boston Scientific shares and join its board following the closing.
Penumbra’s Growth Profile
Alongside the deal announcement, Penumbra also disclosed preliminary financial details that helped underpin the stock’s premarket strength. The company reported that its fourth-quarter 2025 revenue fell between $383.0 million and $384.8 million, representing year-over-year growth of approximately 21% to 22%, or closer to 23% to 24% when excluding China.
Full-year 2025 revenue reached approximately $1.40 billion, up about 17% from the prior year, with growth approaching 25% on an ex-China basis. Profitability remained solid, with a gross margin of nearly 68% in the quarter and just over 67% for the year. Operating income totaled roughly $57 million to $60 million for the quarter and about $187 million to $190 million for the full year, translating to operating margins in the mid-teens.
Financing And EPS Outlook
Boston Scientific expects to fund the approximately $11 billion cash portion through a mix of existing cash and new debt. The company projects adjusted earnings dilution of 6 cents to 8 cents per share in the first full year after closing, with results trending toward neutral to accretive in year two and more accretive thereafter.
BSX held cash and cash equivalents of $1.275 billion as of September 30, 2025.
The companies expect the transaction to close in 2026, pending approval from Penumbra shareholders and the fulfillment of customary regulatory conditions. The deal reflects ongoing consolidation in the medical devices sector, highlighted recently by another transaction in which a buyer expanded its heart surgery capabilities through a targeted acquisition.
Price Action: Penumbra shares were up 17.29% at $353.00 during premarket trading on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data. Boston Scientific shares were down 6.52%.
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