2013 Medtech M&A Review: Another Active M&A Year for Boston Scientific

Boston Scientific nabbed C.R. Bard's electrophysiology operation and Vessix Vascular.

By Clyde A. Burkhardt

Following 2012, when it made three acquisitions to enhance its cardiology and cath-lab portfolios, Boston Scientific furthered its growth and diversification strategy through acquisitions in 2013.

In June, the company acquired the electrophysiology operation of C.R. Bard for $275 million (2.5x sales of about $110 million). The acquisition complements and enhances Boston Scientific’s cardiac catheter ablation instrument portfolio of products, which are used to diagnose and treat abnormal heartbeat conditions. The electrophysiology market is estimated at $2.5 billion and is growing 10% annually.

With the acquisition of Vessix Vascular, in November, Boston Scientific dove head first into the emerging field of renal denervation systems for the treatment of uncontrolled hypertension, a leading cause of death worldwide. Vessix’s Renal Denervation system has the CE Mark in Europe and Therapeutic Goods Administration approval in Australia. The price was $125 million, plus clinical and sales milestones totaling a maximum of $300 between 2013 and 2017.

Boston Scientific is the third medtech company to buy into the renal denervation segment. Medtronic acquired Ardian for $800 million in 2011, and Covidien nabbed Maya Medical in 2012.

Clyde A. Burkhardt is senior managing director of HT Capital Advisors LLC (New York City), a private investment banking firm. He leads HT Capital Advisors' groups focusing on the medical device, healthcare services, and precision component industries. Contact Burkhardt at [email protected].