New York, January 16, 2026, 2:57 PM EST — Regular session
- Boston Scientific shares dipped in afternoon trading as investors mulled over the price tag of its Penumbra acquisition
- Boston intends to cover the bulk of the purchase with cash, while also taking on new debt and facing near-term earnings dilution
- Coming next: deal filings followed by Boston Scientific’s earnings call on Feb. 4
Shares of Boston Scientific Corp dropped 1.8% to $88.44 Friday afternoon, deepening losses following its deal to acquire clot-removal specialist Penumbra. Meanwhile, Penumbra’s stock ticked up 0.3%, reaching $351.62.
Boston agreed Thursday to acquire Penumbra for $14.5 billion, combining cash and stock in a deal Reuters flagged as its second-largest and the first big healthcare merger of 2026. Boston’s shares dropped roughly 4% after the announcement, while Penumbra’s surged over 12%. Investors seemed torn over Boston’s move back into neurovascular—a segment it exited more than a decade ago when it sold that business to Stryker. CEO Mike Mahoney called the deal a “home run” during a call. Truist analyst Richard Newitter said it fills a missing piece in Boston’s neurovascular lineup, though JPMorgan analysts warned of potential investor skepticism. (Reuters)
The trade-off is clear. Boston gains a foothold in mechanical thrombectomy — a minimally invasive technique that clears blood clots using catheters — but it must shell out mostly cash and accept near-term dilution as it waits for growth to materialize.
Penumbra shareholders will have the option to take $374 per share in cash or 3.8721 shares of Boston Scientific, with proration ensuring the total payout breaks down to roughly 73% cash and 27% stock. Boston Scientific plans to cover the $11 billion cash portion through existing cash reserves and new debt. The company anticipates a $0.06-$0.08 hit to adjusted EPS in the first full year post-close. Penumbra projects about $1.4 billion in reported revenue for full-year 2025. (Boston Scientific)
A filing revealed Boston and Penumbra intend to submit a registration statement on Form S-4, which will contain proxy materials for Penumbra shareholders—a crucial move ahead of the vote. The company also held a deal call and released an investor presentation.
Analysts saw the purchase as a sensible step, though its success hinges on execution and cost. BTIG’s Ryan Zimmerman labeled Penumbra a “growth asset.” Meanwhile, RBC Capital Markets’ Shagun Singh noted Penumbra “has been considered a take-out candidate for some time now,” according to MedTech Dive. The outlet also highlighted Stryker’s $4.9 billion acquisition of Inari Medical last year, signaling growing interest in thrombectomy assets. (MedTech Dive)
Mahoney told analysts he was “highly confident” the deal makes strategic and financial sense, according to MD+DI. The report also quoted Brandon Vazquez of William Blair, who called the companies a strong fit. BTIG’s Marie Thibault noted Penumbra’s stroke products complement Boston’s existing vascular lineup, the report said. (Medical Device and Diagnostic Industry)
Boston is also making moves in electrophysiology, a fast-growing segment of heart rhythm treatment. This week, the company snagged FDA clearance for its Farapoint pulsed field ablation catheter, designed for persistent atrial fibrillation. PFA, a newer method, uses electrical pulses to specifically target heart tissue. Stifel’s Rick Wise noted the device could help Boston hold onto market share amid competition from Medtronic and Abbott, who offer rival systems. (MedTech Dive)
In medical devices on Friday, the stocks showed mixed results. Medtronic slipped 1.5%, Abbott dropped 1.1%, while Stryker edged up 0.3%.
The Penumbra deal still needs regulatory approval and the green light from Penumbra’s shareholders. Boston also plans to take on debt to cover the cash part of the purchase. If procedure demand falters or integration stumbles, investors could start seeing that “year two” inflection point as more of a moving target.
Traders will zero in on the initial deal filings and financing details before quickly turning to Boston’s quarterly results. The company plans to release its Q4 and full-year 2025 earnings on Feb. 4, with a conference call set for that morning. (Boston Scientific)
