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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.