Penumbra Inc

Boston Scientific has agreed to acquire Penumbra for $14.5 billion, a deal that would expand the company's presence in thrombectomy, the market for removing blood clots and blockages from blood vessels. The transaction is expected to close in the second half of 2026, subject to customary closing conditions including regulatory clearances, and will be integrated into Boston Scientific's Cardiovascular division. The company said the deal is expected to weigh on adjusted earnings per share by 6-8 cents in the first full year after closing, with the earnings impact improving thereafter. Earlier this year Boston Scientific acquired Valencia Technologies, adding the eCoin system to its Urology portfolio and expanding into implantable tibial nerve stimulation, a deal expected to have an immaterial impact on adjusted earnings per share in 2026 though more dilutive to GAAP earnings. The company also acquired full ownership of Nalu Medical, paying approximately $523 million upfront for the remaining stake, net of cash acquired, after holding an equity stake of approximately 9% since 2017, with the business integrated into the Neuromodulation division. In 2025, closed acquisitions added 340 basis points to sales, contributing to 15.8% organic revenue growth, while the additions of Bolt Medical and SoniVie advanced its coronary and peripheral disease and interventional cardiology strategies.

Boston Scientific has lowered its 2026 expectations, now calling for organic revenue growth of 5% to 6% and adjusted earnings per share of $3.28 to $3.32, or 7% to 8% growth, as weakness in its WATCHMAN and Electrophysiology businesses weighs on performance. Management expects the pressure to extend into 2027, with revenue growth potentially remaining below its weighted average market growth rate and adjusted EPS growth limited. However, growth could pick up meaningfully in 2028, driven by seven new launches that collectively address a total addressable market of nearly $25 billion, including the SEISMIQ 4CE Coronary IVL Catheter and the FARAWAVE Ultra mapping and ablation catheter, as well as the pending Penumbra acquisition. The company is also pursuing a restructuring program targeting approximately $500 million in annual run-rate savings by the end of 2029, with more than half expected by the end of 2027, to support operating-margin expansion and stronger adjusted EPS growth in 2028 and beyond.

Penumbra reported second-quarter 2026 financial results with GAAP earnings per share of $0.88 and total revenue of $390 million. Global thrombectomy revenue reached $259.0 million, a 12.5% increase from the second quarter of 2025, while global embolization and access revenue rose 20.0% to $131.1 million. Gross profit margin improved to 67.9%, up 1.9 percentage points year-over-year. Total operating expenses were $223.9 million, including $25.4 million in research and development and $198.5 million in selling, general and administrative costs, which contained $6.9 million in acquisition-related expenses tied to the pending acquisition of Penumbra by Boston Scientific Corporation. Income from operations was $41.0 million and net income was $34.8 million.

Penumbra is drawing attention after Novant Health reported successful use of its newly cleared THUNDERBOLT computer assisted vacuum thrombectomy system at a North Carolina comprehensive stroke center. The stock trades at $318.73, about 13% below the average analyst price target, with a popular narrative suggesting a fair value of roughly $363 and a 12.3% undervaluation. However, a Simply Wall St DCF model points to a fair value of $216.68, implying the stock is trading well above its estimated future cash flow value. The upcoming STORM PE randomized trial is expected to provide Level 1 evidence comparing Penumbra's thrombectomy technology to standard anticoagulation for pulmonary embolism, which could significantly expand guideline adoption and procedure volumes. Investors are weighing these conflicting valuation signals against risks including reliance on key franchises and rising competitive and regulatory pressure.

Penumbra received FDA clearance for its THUNDERBOLT computer-assisted vacuum thrombectomy system for acute ischemic stroke treatment. The clearance follows the THUNDER study, which reported strong safety and efficacy results for the device. A leading stroke center has already begun using THUNDERBOLT in clinical practice, expanding its real-world footprint. The system uses computer-assisted, modulated aspiration to automate part of the thrombectomy process, potentially offering hospitals more consistent clot removal and procedure times. Penumbra, traded on the NYSE under ticker PEN, focuses on medical devices for neuro and vascular conditions, and this clearance adds a new technology to its stroke portfolio at a time when hospitals seek more precise and efficient treatment tools.

Penumbra has received CE Mark approval in Europe for its THUNDERBOLT computer-assisted vacuum thrombectomy system, following FDA clearance in the United States last week. The device introduces modulated aspiration to the company's neuro thrombectomy portfolio and is designed to detect, fatigue, and completely ingest clots at the site of occlusion, potentially shortening procedure times and improving patient outcomes. THUNDERBOLT is the only CAVT device available for stroke treatment in both Europe and the United States, representing a first-of-its-kind advancement in acute ischemic stroke care. Penumbra shares edged down 0.2% to $318.21 on Monday following the announcement, though the company's international revenue rose 16.5% year over year in the first quarter of 2026 and accounted for 20.9% of total revenues. The company currently has a market capitalization of $12.44 billion, and the Zacks Consensus Estimate projects 2026 earnings growth of 32.3% and revenue growth of 13.3%.