• BTIG downgraded Penumbra Inc. (NYSE:PEN) from a Buy to a Neutral rating following the announcement of Boston Scientific's acquisition offer.
• The acquisition offer from Boston Scientific values Penumbra at $374 per share, a 19% premium over its previous closing price, but investor caution remains.
• Boston Scientific's acquisition, its largest in two decades, is expected to enhance its cardiovascular and neurovascular portfolio, despite causing a 4.5% decline in its stock price.

Penumbra Inc. (NYSE:PEN) is a medical device company specializing in innovative therapies for vascular and neurovascular conditions. Recently, BTIG downgraded Penumbra from a Buy to a Neutral rating when the stock was priced at $350.49, as reported by TheFly. This downgrade comes amid significant developments involving Penumbra and its industry peers.

Boston Scientific Corp. has announced its intention to acquire Penumbra in a deal valued at approximately $14.5 billion. This acquisition offer values Penumbra at $374 per share, a 19% premium over its previous closing price. The acquisition is expected to enhance Boston Scientific's cardiovascular and neurovascular portfolio.

The transaction will be financed with 73% cash and 27% stock. Boston Scientific plans to fund the $11 billion cash portion through cash reserves and new debt. Penumbra shareholders can choose between $374 in cash or 3.87 shares of Boston Scientific stock. This strategic acquisition marks Boston Scientific's largest in two decades, impacting its stock price negatively.

Following the acquisition announcement, Penumbra's shares surged nearly 12% to around $350, while Boston Scientific's shares declined by 4.5% to approximately $90. The boards of both companies have approved the transaction, which is expected to close in 2026, pending Penumbra shareholder approval. This acquisition is set to bolster Boston Scientific's offerings in mechanical thrombectomy and embolization devices.