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Apollo Endosurgery hits session high as analyst see other potential bids

  • Apollo Endosurgery (NASDAQ:APEN) hit session highs is now up 67% after an analyst said he sees the potential for a higher offer than the Boston Scientific's $10/share deal.
  • While Boston Scientific (BSX) is the most logical acquirer given its endoluminal franchise, other bidders may include endoscope makers Fuji (OTCPK:FUJIY) and Olympus (OTCPK:OCPNF) as well as global device companies such as Johnson & Johnson (JNJ) and Teleflex (TFX), Craig-Hallum analyst Matt Hewitt wrote in a note on Tuesday.
  • "While takeout has always been our expectation, we are surprised by both the timing and the price," Hewitt, who has a buy rating and $14 price target on APEN wrote in the note.
  • "Given the size of the market opportunities, we would not be surprised if another offer came in over the coming weeks ..." Hewitt added.
  • Boston Scientific (BSX) announced an agreement earlier Tuesday to acquire Apollo Endosurgery (APEN) for nearly $615M or $10 per share in an all-cash deal expected to close in 1H 2023.