Boston Scientific Announces Acquisition of Securus Medical Group, Inc.

Tuesday, April 3, 2018 General News
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Acquisition strengthens electrophysiology cardiac ablation portfolio with thermal monitor

MARLBOROUGH, Mass., April 3, 2018 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) today announced the acquisition

of Securus Medical Group, Inc., a privately-held company that has developed a thermal monitoring system for the continuous measurement of esophageal temperature. Boston Scientific has been an investor in Securus since 2016, and the transaction price for the remaining stake not already owned consists of $40 million in cash up-front, as well as up to $10 million in contingent payments based on regulatory achievements and commercial milestones.

Arrhythmias are commonly treated with cardiac ablation – the process of delivering radiofrequency (heating) or cryothermal (cooling) energy to destroy a small area of heart muscle responsible for the abnormal heart rhythm. Physicians monitor the temperature of the esophagus, which is located behind the area of the heart where the hot or cool energy is applied, during an ablation procedure to avoid thermal injury.

The thermal monitoring system developed by Securus Medical Group is an integrated catheter-based probe and imaging system that generates real-time images of the temperature of the esophagus.

"In contrast to current standards of care for esophageal temperature monitoring that measure temperature at one or a few fixed locations and have a slow temporal response, this system continuously reads the temperature of the esophagus from thousands of points and provides physicians with an intuitive 360 degree view that refreshes every second," said Steven Girouard, Ph.D, president and chief executive officer, Securus Medical Group. "Further, the system does not require tissue contact for accurate temperature readings, allowing for simplified, one-time positioning of the probe."

The latest generation infrared esophageal temperature monitoring system recently received 510(k) clearance from the U.S. Food and Drug Administration and is expected to be integrated into the Boston Scientific portfolio and commercially available in the U.S. in the first half of 2019.

Boston Scientific offers a diverse set of electrophysiology products and services for the diagnosis and management of cardiac rhythm disorders. In October 2017, the company acquired Apama Medical Inc., adding a single-shot, multi-electrode catheter technology designed for pulmonary vein isolation for the treatment of atrial fibrillation to its product development portfolio. In addition, the company recently launched the INTELLANAV™ ST navigation-enabled, small-tip catheter for more precise ablations, further expanding the range of therapeutic catheter capabilities available to physicians.

"The acquisition of Securus further broadens our electrophysiology portfolio and fuels our mission to provide physicians with meaningful innovations that advance patient care," said Joe Fitzgerald, president of Rhythm Management, Boston Scientific. "Additionally, we look forward to integrating this visual technology with our RHYTHMIA HDx™ Mapping System to provide a new level of comprehensive cardiac imaging during ablation procedures."

Securus Medical Group is headquartered in Cleveland, Ohio, with offices in Beverly, Massachusetts.

The transaction is expected to be immaterial to Boston Scientific adjusted and GAAP earnings per share.

About Boston Scientific 

Boston Scientific transforms lives through innovative medical solutions that improve the health of patients around the world. As a global medical technology leader for more than 35 years, we advance science for life by providing a broad range of high performance solutions that address unmet patient needs and reduce the cost of healthcare. For more information, visit www.bostonscientific.com and connect on Twitter and Facebook.

Cautionary Statement Regarding Forward-Looking Statements 

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding the  acquisition, the financial and business impact of the transaction, product launches and product performance and impact. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.

Factors that may cause such differences include, among other things: future economic, competitive, reimbursement and regulatory conditions; new product introductions; demographic trends; the closing and integration of acquisitions; intellectual property; litigation; financial market conditions; and future business decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A – Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A – Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. This cautionary statement is applicable to all forward-looking statements contained in this document.

Use of Non-GAAP Financial Measures

To supplement our consolidated financial statements presented on a GAAP basis, we disclose certain non-GAAP financial measures, including adjusted net income (earnings) per share that excludes certain charges and/or credits. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States and should not be considered in isolation from or as a replacement for the most directly comparable GAAP financial measures. Further, other companies may calculate these non-GAAP financial measures differently than we do, which may limit the usefulness of those measures for comparative purposes.

To calculate adjusted net income (earnings) per share we exclude certain charges (credits) from GAAP net income, including amortization expense, acquisition-related net charges (credits) and restructuring and restructuring-related net charges (credits). Please refer to Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recent Annual Report filed on Form 10-K for an explanation of each of these adjustments and the reasons for excluding each item

The GAAP financial measures most directly comparable adjusted net income per share is GAAP net income and GAAP net income per share.

Management uses these supplemental non-GAAP financial measures to evaluate performance period over period, to analyze the underlying trends in our business, to assess our performance relative to our competitors, and to establish operational goals and forecasts that are used in allocating resources. In addition, management uses these non-GAAP financial measures to further its understanding of the performance of our operating segments. The adjustments excluded from our non-GAAP financial measures are consistent with those excluded from our operating segments' measures of net sales and profit or loss. These adjustments are excluded from the segment measures that are reported to our chief operating decision maker that are used to make operating decisions and assess performance.

We believe that presenting adjusted net income per share, in addition to the corresponding GAAP financial measures, provides investors greater transparency to the information used by management for its operational decision-making and allows investors to see our results "through the eyes" of management. We further believe that providing this information assists our investors in understanding our operating performance and the methodology used by management to evaluate and measure such performance.

CONTACTS:Trish BackesMedia Relations(651) 582-5887 (office)Trish.Backes@bsci.com

Susie Lisa, CFAInvestor Relations(508) 683-5565 (office)BSXInvestorRelations@bsci.com

Cision View original content:http://www.prnewswire.com/news-releases/boston-scientific-announces-acquisition-of-securus-medical-group-inc-300623093.html

SOURCE Boston Scientific Corporation

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