Boston Scientific announced Thursday that it is buying the interventional business of Bayer AG for $415 million in cash. The deal is expected to close in the second half of the year.
The sale includes 3 devices - the AngioJet thrombectomy and Jetstream atherectomy systems, as well as the Fetch2 Aspiration Catheter used in cardiology, radiology and peripheral vascular procedures. The divestiture would allow the German company to concentrate on its diabetes and radiology businesses, according to Bayer's announcement. After closing, the business would become part of Boston Scientific’s Peripheral Interventions business.
|Attend the largest medtech event on the East Cost - MD&M East Conference & Exposition - June 9-12 in New York City|
“The addition of Bayer Interventional will expand our commercial footprint and enhance our ability to provide physicians and healthcare systems with a complete portfolio of solutions to treat challenging vascular conditions,” said Jeff Mirviss, president, Peripheral Interventions, Boston Scientific in a news release. “We believe this acquisition will accelerate the growth of our Peripheral Interventions business and strengthen our position as a global leader in peripheral therapies.”
Boston Scientific’s CEO said in a statement that the acquisition will “ enable us to reach more effectively the greater than 27 million patients worldwide who suffer from the debilitating effects of peripheral vascular disease.”
An analyst described the deal as a highly strategic one.
"This acquisition is highly strategic for BSX, filling out its portfolio within its Peripheral Intervention business, which accounted for just over 10% of total BSX sales in 2013," wrote Danielle Antalffy, an analyst with healthcare investment bank Leerink Partners, in a research note following the announcement. "The Peripheral business has been a mid-single-digit grower for BSX, above the 3-4% total Peripheral market growth, and we believe the Bayer devices further supplement that growth."
The announcement of Boston Scientific's plan to acquire Bayer’s interventional business comes just a little over a week after the Natick, Massachusetts company bought out IoGyn for $65 million. It previously held a 28% equity in IoGyn, which has an FDA cleared device for hysteroscopic intrauterine tissue removal including fibroids (myomas) and polyps.
[Photo Credit: iStockphoto.com user Cimmerian]