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
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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