Why did Apollo Endosurgery stock boom today? Agreed to sale to Boston Scientific
Apollo Endosurgery (NASDAQ:APEN) skyrocketed 67% after Boston Scientific (NYSE:BSX) agreed to purchase the medtech company for $10/share.
Apollo Endosurgery (APEN) traded through the $10/share deal after one analyst said he believed that the company could see a higher offer.
"While takeout has always been our expectation, we are surprised by both the timing and the price," Craig-Hallum analyst Matt Hewitt wrote in a note on Tuesday. Hewitt 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.
Austin, Texas-based Apollo (APEN) develops products used in endoluminal surgery (ELS), a less-invasive option to open and laparoscopic surgery in patients with gastrointestinal disorders and morbid obesity.
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.