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| Boston Scientific CEO Mike Mahoney |
Boston Scientific ($BSX) announced on May 15 that it is acquiring Bayer AG's interventional division for $415 million to bulk up on devices for the treatment of peripheral vascular disease.
Devices to be added to Boston's portfolio include the AngioJet Thrombectomy System, the Fetch 2 Aspiration Catheter for the removal of blood clots and the JetStream Atherectomy System for removing plaque from peripheral arteries.
"These technologies help physicians save both limbs and lives, and we believe this transaction will enable us to reach more effectively the greater than 27 million patients worldwide who suffer from the debilitating effects of peripheral vascular disease," said the company's CEO, Mike Mahoney, in a statement.
Upon closing of the transaction in the second half of 2014, Bayer Interventional will be integrated into the Boston Scientific peripheral interventions business, which had revenues of $203 million in Q1 2014. Bayer Interventional had about $120 million in sales in 2013 and employs around 350 people, Boston Scientific said in a statement.
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| Bayer Healthcare CEO Olivier Brandicourt |
From Bayer's perspective, the transaction is about focusing on core competencies. "With this sale, our Medical Care division can concentrate on innovation and growth in radiology and diabetes care where we already have a strong presence," said Dr. Olivier Brandicourt, CEO of Bayer HealthCare AG, in a statement.
The divestiture follows similar moves by other biopharma companies that have suddenly decided to focus on their big, market-leading units and sell their smaller ones. In fact, Bayer just spent $14.2 billion to acquire Merck's ($MRK) consumer care and over-the-counter products. Last month Glaxo ($GSK), Eli Lilly ($LLY) and Novartis ($NVS) engaged in a three-way swap of business units (as well as cash) to focus on their areas of expertise.
Boston Scientific's move shows that medical device companies have an active role to play in drugmakers' continued wheeling and dealing.
- read the Boston Scientific release
- get the Bayer release
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