Following the announcement that Boston Scientific has entered into a definitive agreement to acquire Apollo Endosurgery for approximately $615 million;

Brian Hicks, Senior Medical Devices Analyst at GlobalData, a leading data and analytics company, offers his view:

“This deal value is quite a significant one, however it’s not overly surprising that Boston Scientific had been seeking to acquire Apollo Endosurgery, as it’s a highly attractive company given its product portfolio and financial performance. This acquisition will expand Boston Scientific’s arsenal of endoscopic devices and further solidify its competitive advantage across multiple markets.

“Boston Scientific is already among the leading companies within the endoscopic devices market for performing a variety of gastrointestinal surgeries, and Apollo Endosurgery also has a robust endoscopy product portfolio. Furthermore, Apollo Endosurgery has historically been the leader of the gastric balloon market, as it has successfully marketed its Orbera System outside the US since 2004 and received FDA approval for it in 2015.

“As Boston Scientific has yet to market bariatric devices, this acquisition will propel it to lead the $22 million market, where gastric balloons still play an important role in surgically treating obesity. According to GlobalData’s Medical Intelligence Center, the US and Brazil are the two leading countries for bariatric surgeries by large margins, thus further investing in these countries will strongly benefit the company.”