Boston Scientific, which has been making acquisitions left and right this year, plans to lay off 85 workers at a Burlington, MA-based facility that came with the company's acquisition of Cosman Medical in 2016.
Cosman developed radiofrequency ablation technology for the treatment of chronic pain and was integrated into Boston Scientific's neuromodulation business. The company submitted a Worker Adjustment and Retaining Act (WARN) report in Massachusetts disclosing the layoffs. The headcount reduction is expected to begin Sept. 28 and continue through December.
When Boston Scientific acquired Cosman in July 2016, the financial terms of the deal were not disclosed.
These layoffs are not completely unexpected, given how active Boston Scientific has been this year on the M&A scene. During the company's second-quarter earnings call, analysts peppered CEO Mike Mahoney for color regarding the company's recent M&A activity, as Boston Scientific has made half a dozen tuck-in acquisitions since March and appears to still have an appetite for more deals.
Joanne Wuensch, a medtech analyst at BMO Capital Markets, asked Mahoney if there are things in the company's portfolio as a result of this recent activity that Boston Scientific plans to let go of at some point.
"Oh yeah, there's a lot of things we don't want to have," Mahoney said but the CEO stopped short of sharing what assets he was referring to. "I'm not going to share it on the call. We have a very thoughtfully laid out strategic plan that we continue to modify ... we know very clearly what spaces we want to invest in, what adjacencies we want to invest in and what areas we don't."