Baylis Medical

Baylis Medical develops and sells medical devices in the field of cardiology and spine.

History

2021: Boston Scientific bought Baylis Medical for $1.75 billion

In early October 2021, Boston Scientific bought Baylis Medical, a developer of heart surgery devices, for $1.75 billion to expand its electrophysiology and heart products portfolio. The company became one of the most active companies in the field of medical technologies in 2021.

This acquisition, which is subject to closure, is expected to bring net sales of almost $200 million in 2022, Boston Scientific said in a statement. The deal is expected to close in the first quarter of 2022. Some vital cardiac procedures include a puncture of the septum, the dividing wall between the two sides of the heart.

Baylis Medical produces many conductors, covers and other devices that can improve the safety and effectiveness of treating the left half of the heart. According to the statement, Baylis Medical received permission from the United States to use its NRG platform in 2008, and since then the technology has been used in more than 1 million procedures.

Boston Scientific acquired Baylis Medical for $1.75 billion

Baylis Medical will be Boston Scientific's fifth deal in 2021 and a second deal worth more than $1 billion. Baylis Medical's acquisition bypasses the M&A strategy outlined by Boston Scientific during a July earnings phone call. CFO Daniel Brennan said the company would prefer takeover deals in the future, however, Baylis Medical, which costs nearly $2 billion, is the biggest deal this year. Before the deal was announced, Boston Scientific had about $2.7 billion in funds as of June 30, 2021, according to Daniel Brennan.

Boston Scientific uses the deal to grow its electrophysiology and structural cardiology business, which includes the flagship Watchman LAAC device. According to the company's presentation, Baylis Medical will add about $1.5 billion to the total market for electrophysiology and structural heart segments, as a result of which the total addressable market for electrophysiology and mitral devices will amount to about $13 billion by 2024.

Analysts at JPMorgan Chase noted that most of Baylis Medical's projected sales for 2022 are likely to come from the United States, but Boston Scientific has the ability to use its much larger geographical presence, it is soon necessary for the globalization of the product line, as well as to combine it with its upcoming products for mitral ablation and help accelerate the launch of new catheters.^[1]

Notes