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"As part of an ongoing review of our assets, we have initiated a processto explore the sale of our Cardiac Surgery and Vascular Surgery businesses,"said Paul LaViolette, Chief Operating Officer of Boston Scientific. "Iffinalized, this sale will support our efforts to focus resources on our corebusinesses and improve our operating and financial performance. These arestrong businesses, and we believe the combined portfolio has great potentialfor success with the focused attention and resources of external ownership.We are in discussions with several potential buyers, and we expect the processto take a number of months."
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"This is another step in the progress we are making on our plan to divestnon-strategic assets, monetize our investment portfolio and bring our expensesand head count in line with our revenues," added LaViolette. "We have nowidentified three non-strategic businesses to divest, and we are in discussionswith potential buyers for all three. In recent months we have retained ourEndosurgery group, entered into an agreement to assume sole management andcontrol of our pain management business from Advanced Bionics and sell theAdvanced Bionics auditory business, monetized parts of our portfolio, andbegun developing an expense and head count reduction plan, which we plan toannounce next quarter. In addition, we continue to focus on the recovery ofthe drug-eluting stent and cardiac rhythm management markets. Together, thesemeasures should combine to help us achieve our overall goals of restoringprofitable growth, increasing shareholder value, and continuing to build andstrengthen Boston Scientific."
Boston Scientific acquired the Cardiac Surgery business in April 2006 aspart of the Guidant transaction. Headquartered in San Jose with amanufacturing facility in Dorado, Puerto Rico, the Cardiac Surgery business isa leading developer of medical technologies designed to provide less-invasivetherapies in cardiac surgery, including beating heart bypass surgery systems,endoscopic vessel harvesting for coronary bypass surgery, and microwavesurgical ablation. The business employs approximately 450 people and had 2006revenues of $189 million.
Boston Scientific established its Vascular Surgery business with theacquisition of Meadox Medicals in 1995. The Vascular Surgery businessdevelops market-leading synthetic grafts and patches for repair of abdominalaortic aneurysms and peripheral vascular anatomy. The business had 2006revenues of $86 million and has approximately 250 employees, primarily locatedat its manufacturing site in Wayne, New Jersey.
This announcement shall not constitute an offer to sell or thesolicitation of an offer to buy nor shall there be a sale of any securities inany State in which such offer, solicitation or sale would be unlawful prior toregistration or qualification under applicable securities laws.
Boston Scientific is a worldwide developer, manufacturer and marketer ofmedical devices whose products are used in a broad range of interventionalmedical specialties. For more information, please visit:http://www.bostonscientific.com.
This press release contains forward-looking statements. Boston Scientificwishes to caution the reader of this press release that actual results maydiffer from those discussed in the forward-looking statements and may beadversely affected by, among other things, risks associated with productdevelopment and commercialization, clinical trials, intellectual property,regulatory approvals, competitive offerings, disposition of non-strateg
