Boston Scientific Planning Cardiac, Vascular Unit Sale

Boston Scientific (Natick, MA, USA) is planning to explore the sale of its cardiac surgery and vascular surgery units to help shore up its financial performance.

The combined sales figure of both units was US$275 million in 2006, comprising 3.5% of Boston Scientific's total sales. The larger of the two businesses for sale (cardiac surgery) was acquired as part of the Guidant deal in April 2006. Boston Scientific acquired the vascular surgery business through a separate deal 12 years ago. The company is also targeting cost and workforce reductions and plans to release more details on that front in the fourth quarter of 2007. The company seeks to cut expenses amid rocky market conditions for its two core businesses, implantable defibrillator and drug-coated stent heart devices.

"We are in discussions with several potential buyers, and we expect the process to take a number of months,” said Paul LaViolette, Boston Scientific's chief operating officer. "This sale will support our efforts to focus resources on our core businesses and improve our operating and financial performance.”

The announcement comes two weeks after Boston Scientific reported that it had decided against a partial initial public offering for its endosurgery business. Such a move could have brought in more than $1 billion to pay down debt, but the company said it decided the business was worth more as part of the company. The endosurgery unit, which includes oncology, endoscopy, and urology businesses, posted $1.35 billion in total revenue during 2006.


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