Boston Scientific said Monday it won't comment on reports rival medical device manufacturer Stryker made a takeover bid. The news was first reported by The Wall Street Journal. Stryker also stated it does not comment on potential mergers or acquisitions.
Both companies halted trading Monday afternoon before Boston Scientific released a statement that it wouldn’t comment.
"Boston Scientific ... is aware of reports speculating that the company has been approached by Stryker Corporation regarding a potential acquisition," the company said in a filing with the Securities and Exchange Commission. "Consistent with its practice, the company does not comment on market rumors or speculation."
If Stryker took over Boston Scientific, the combined medical-device giant would have a value of more than $110 billion.
This would not be the first deal amongst the two companies. In 2011, Boston Scientific sold its Neurovascular business to Stryker for $1.5 billion.
If such a deal were in the works, a combining of assets could broaden Stryker’s portfolio of medical-surgical and orthopedic products, such as parts for knee and hip replacements, with Boston Scientific's offering in cardiology products such as pacemakers and implantable cardioverter defibrillators, peripheral interventions, cardiac rhythm management and electrophysiology and med-surg. Both companies make spinal cord stimulators used in chronic pain management, endoscopy devices and med-surg products.
Mergers have been accelerating of late, driven by a need for device and supply vendors to package products and reduce costs as well as sell more effectively to a consolidating and cost-constrained market place among health systems, hospitals, doctors and clinics. A year ago, Abbott Laboratories bought St. Jude Medical and Alere. A few years earlier, Medtronic expanded with the purchase of Covidien.
Wall Street analysts offered that a deal could allow Boston Scientific and Stryker to better compete with larger vendors such as Medtronic and Abbott.