Boston Scientific plans further consolidation of core businesses

21 August 2007

Natick, Mass, USA. Boston Scientific Corporation (NYSE:BSX) has announced its intention to explore the sale of its cardiac surgery and vascular surgery businesses as "part of plans to review its portfolio of assets and divest those considered non-strategic, and to strengthen its operating and financial performance".

It acquired the Cardiac Surgery business in April 2006 as part of the Guidant transaction. It has had the vascular surgery business since 1995 when it took over Meadox Medicals.

On 9 August the company announced that it was amending the 2004 merger agreement with Advanced Bionics, with Boston Scientific taking full control of the pain management business and selling the auditory business and drug pump development program to principals of Advanced Bionics.

The Pain Management business and emerging indications program would operate as Boston Scientific Neuromodulation, and continue to be headquartered in Valencia, California. This includes spinal cord stimulation technologies, as well as emerging technologies such as the bion microstimulator, a neuromodulation product.

The Auditory business and drug pump program will operate as Advanced Bionics and be headquartered in Valencia, California. The deal is subject to Advanced Bionics shareholder and regulatory approval.

On 2 August the company announced that the Endosurgery group would remain wholly owned by the Company, and on 24 July it announced plans to explore the sale of its fluid management business as part of its ongoing review of its portfolio of assets. This was originally acquired from North American Medical Instruments Corp. (NAMIC), The sale would also include facilities in Glens Falls, New York and Tullamore, Ireland.

The market's reaction to the company's moves has driven shares to a five-year low in the last week.

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