Boston ready for cardiovascular surgery sell-off?
This article was originally published in Clinica
Executive Summary
Boston Scientific is on the verge of selling its cardiac surgery and vascular surgery businesses, as part of a strategy to strengthen its finances. Boston thus has three of its business units on the market - it recently revealed that it is considering the divestment of its fluid management business - and is in talks with potential buyers for them. The company hopes the proceeds will cover the loss of revenue generated by each business. Total revenue for the cardiac and vascular units in fiscal 2006 was $275m. The Natick, Massachusetts-based firm acquired the cardiac surgery business through its purchase of Guidant. The unit has a manufacturing facility in Puerto Rico, with 450 employees, and makes clampless surgery systems, beating-heart surgery systems, endoscopic vessel-harvesting systems and microwave ablation systems. The vascular unit manufactures grafts and patches for treating abdominal aortic aneurysms, at its Wayne, New Jersey plant, and has 250 members of staff. Boston has been weighed down with debt after purchasing Guidant for $27bn in April 2006 (see Clinica No 1203, p 2), and is looking to sell two manufacturing plants in Glens Falls, New York, and Tullamore, Ireland (see Clinica No 1268, p 10), as well as the three business units.
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