Boston Scientific remains confident in Axonics acquisition, surpasses Q3 expectations.
October 25, 2024
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AXONICS ($NASDAQ:AXNX) is a medical technology company that focuses on developing and commercializing innovative solutions for patients suffering from urinary and fecal incontinence. The acquisition, which is still pending regulatory approvals, has received a positive response from both companies’ shareholders. Boston Scientific expects the deal to be finalized by the end of this year, further expanding its offerings in the urology and pelvic health market. Despite the ongoing pandemic and economic uncertainties, Boston Scientific remains confident in its decision to acquire AXONICS and is excited about the growth potential it brings. This confidence was reinforced by Boston Scientific’s Q3 earnings report, which surpassed street expectations. This was driven by double-digit growth in Europe, Middle East, and Africa (EMEA) and Asia Pacific regions, as well as a recovery in elective procedures in the United States. In addition to strong financial results, Boston Scientific also reported progress in its key growth drivers, including the launch of new products and the expansion of its global reach.
The company expects these factors to continue driving growth and create long-term value for shareholders. With the acquisition of AXONICS, Boston Scientific will add a new growth driver to its portfolio with SNM therapy. This therapy offers a minimally invasive option for patients suffering from overactive bladder syndrome or fecal incontinence. As the global population continues to age, the demand for SNM therapy is expected to rise, making it a promising addition to Boston Scientific’s offerings. In conclusion, Boston Scientific’s confidence in its decision to acquire AXONICS is reflected in its Q3 performance and outlook for the remainder of the year. With the deal expected to be finalized soon, both companies are poised for continued growth and success in the medical technology market.
Price History
Boston Scientific, a global medical technology company, recently reaffirmed its confidence in the acquisition of Axonics, a leading developer of innovative sacral neuromodulation (SNM) solutions. This announcement came shortly after Boston Scientific released its third quarter financial results, where the company surpassed expectations and reported strong revenue growth. On Wednesday, the day of the announcement, Axonics’ stock opened at $70.27 and closed at $70.27, showing a slight decrease of 0.03% compared to the previous day’s closing price of $70.29. Despite this small dip in stock price, Boston Scientific’s CEO, Mike Mahoney, expressed his enthusiasm for the upcoming acquisition and the potential it holds for both companies. He stated, “We are excited about the growth potential of the SNM market and believe that Axonics’ innovative technology will complement our existing portfolio and provide significant value for patients and physicians.” The acquisition of Axonics is part of Boston Scientific’s strategy to expand its urology and pelvic health business division.
With Axonics’ SNM solutions for treating overactive bladder and fecal incontinence, Boston Scientific aims to strengthen its position in this growing market. This acquisition also aligns with Boston Scientific’s commitment to providing patients with a wide range of treatment options for bladder and bowel control disorders. Overall, Boston Scientific’s continued success and confidence in the Axonics acquisition are promising signs for the company’s future growth. With a strong financial performance and a strategic expansion in the urology and pelvic health market, Boston Scientific is well-positioned to continue delivering innovative solutions for patients worldwide. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Axonics. More…
| Total Revenues | Net Income | Net Margin |
| 366.38 | -6.09 | 2.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Axonics. More…
| Operations | Investing | Financing |
| 1.71 | -120.35 | 133.97 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Axonics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 719.92 | 82.36 | 12.56 |
Key Ratios Snapshot
Some of the financial key ratios for Axonics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 48.7% | – | -1.3% |
| FCF Margin | ROE | ROA |
| -0.2% | -0.5% | -0.4% |
Analysis
As I analyzed AXONICS‘s financials, I found that the company has an intermediate health score of 4/10 according to the Star Chart. This indicates that while the company may face some challenges with its cashflows and debt, it is still likely to be able to sustain its future operations in times of crisis. One of the strengths I noticed in AXONICS’s financials is its strong asset position. The company has a solid asset base, which could provide stability and security in the long run. Additionally, AXONICS has seen significant growth in recent years, which is a positive sign for investors looking for potential returns. However, I also observed that AXONICS has weak performance in terms of dividends and profitability. This means that while the company is growing and has a strong asset base, it may not be generating high profits or distributing dividends to its shareholders. This could be a concern for investors who prioritize stable income or strong profitability in their investment decisions. This may appeal to investors who are willing to take on some risk in exchange for potential high returns. Overall, I believe that AXONICS may be attractive to growth-oriented investors or those who are interested in investing in a company with a strong asset base and potential for future growth. However, investors who prioritize stability and consistent dividends may want to consider other options. More…
Peers
The company’s products include the Axonics r-SNM System, a sacral neuromodulation system that is used to treat urinary incontinence and bowel dysfunction; and the Axonics Sacral Neuromodulation System, a rechargeable neuromodulation system that is used to treat urinary incontinence, bowel dysfunction, and sacral pain. Alphatec Holdings Inc, Xtant Medical Holdings Inc, INVO Bioscience Inc are all companies that compete with Axonics Inc.
– Alphatec Holdings Inc ($NASDAQ:ATEC)
Alphatec Holdings, Inc. is a medical device company that designs, develops, manufactures and markets spine products for the surgical treatment of spinal disorders associated with degenerative disc disease and trauma. The company’s product offerings include a broad range of minimally invasive and stand-alone products used in spine surgery. Alphatec’s core products consist of facet fixation systems, interbody fusion cages, thoracolumbar fixation systems, and related instrumentation. The company also offers a line of biologics products. Alphatec has a market cap of 1.07B as of 2022 and a return on equity of -374.34%.
– Xtant Medical Holdings Inc ($NYSEAM:XTNT)
Xtant Medical Holdings Inc is a medical device company that develops, manufactures, and markets regenerative medicine products and medical devices for the orthopedic, spine, and sports medicine markets worldwide.
The company has a market cap of $68.18 million and a return on equity of -14.12%. Xtant Medical Holdings Inc develops, manufactures, and markets regenerative medicine products and medical devices for the orthopedic, spine, and sports medicine markets worldwide.
– INVO Bioscience Inc ($NASDAQ:INVO)
Invo Bioscience is a biotech company that focuses on developing and commercializing in vitro fertilization (IVF) products. The company’s products are used by fertility clinics to improve IVF success rates and reduce the costs associated with fertility treatments.
Invo Bioscience has a market cap of $14 million and a return on equity of -107.22%. The company’s products are used by fertility clinics to improve IVF success rates and reduce the costs associated with fertility treatments.
Summary
Boston Scientific’s acquisition of Axonics is expected to close this year, which could bring significant value to investors. The potential synergies between the two companies could result in increased sales and profits for Boston Scientific. In its recent Q3 earnings report, Boston Scientific beat analysts’ expectations, suggesting a strong financial performance. This positive news, coupled with the potential impact of the Axonics deal, may make Boston Scientific a promising investment opportunity for investors looking to capitalize on potential growth in the medical device industry.
However, as with any investment, it is important to carefully consider all factors before making a decision.
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