As Boston Scientific continues to restructure after a tough, $1 billion loss year, Michael Phalen, SVP and president of the company's endoscopy division, points towards more acquisitions. In particular, he mentioned recent meetings with "three to four Israeli companies" at Ernst & Young and Globes' Israel Journey 2010 Conference.
"Our vision has been more or less fixed for decades: to bring to market less invasive products.," Phalen told Globes. "This concept will continue to direct us. The main change in our business is that more rapid growth will in future come from developing countries, in contrast to the Western World." Phalen emphasized the importance of a strong safety, growth and intellectual property profile for acquired devices and companies. "Does your intellectual property portfolio enable us to strengthen our position in a particular field against the competition?" he said. "Could it even let us attack the competitors?"
Phalen's remarks came as the company announced it had completed its Asthmatx purchase. Last month, Boston Sci bought Asthmatx for $443.5 million, including $194 in up-front payments, a move that was praised by many, including Brian Orelli of The Motley Fool. "I like where this is going, Boston Scientific," Orelli said. "I'm just not sure whether we can call it a turning point quite yet."