Boston Scientific ($BSX) is buying BridgePoint Medical, a maker of catheter-based blood-flow-restoration devices, looking to add marketable technology to its flagging cardiac business.
Boston Sci didn't disclose the financial terms of the deal, but the company will get BridgePoint's CrossBoss catheter and Stingray CTO re-entry system, two FDA-cleared devices designed to break through blocked coronary arteries and restore blood flow, all without bypass surgery.
"The BridgePoint Medical CTO system is a compelling addition to our industry-leading suite of cardiology products," Kevin Ballinger, president of the Boston Sci's interventional cardiology unit, said in a statement. "This acquisition strengthens our portfolio and demonstrates the Boston Scientific commitment to continued leadership in interventional cardiology."
And a jolt in its cardiac business is just what Boston Sci needs. Last quarter's $3.4 billion loss included a 13% drop in interventional cardiology sales, and the company is in the process of splitting its cardiac unit in two, separating stents and catheters from implantable defibrillators. The medical device giant is also in the midst of cutting jobs, Reuters reported last month, but the company hasn't disclosed just how many.
Back in July, interim CEO Hank Kucheman told FierceMedicalDevices that Boston Sci has a plan to get back in the black, looking to cut spending and roll out new devices. The BridgePoint acquisition builds upon what Kucheman called Boston Sci's "rich product portfolio in cardiology" and, more important, gives it more ready-to-sell devices.
Back in January, BridgePoint licensed three of its peripheral vascular devices to Covidien ($COV) for an undisclosed sum, and Boston Sci spokesman Steven Campanini told FierceMedicalDevices that the deal won't impact that agreement, and Boston Sci won't sell any of BridgePoint's devices in the peripheral vascular space.
The company expects the buyout to close in the fourth quarter, and Boston Sci doesn't expect the acquisition to affect earnings this year or the next.
- read Boston Scientific's statement