NATICK, Mass., Jan. 4, 2011 /PRNewswire/ — Boston Scientific Corporation (NYSE: BSX) today announced the completion of its acquisition of Sadra Medical, Inc. of Los Gatos, California. The transaction follows the definitive merger agreement announced on November 19, 2010. Under the terms of the agreement, Boston Scientific paid $193 million to acquire the remaining 86 percent of Sadra Medical’s equity not already owned by Boston Scientific. Additional payments of up to $193 million are contingent upon achievement of specified regulatory and revenue-based criteria through 2016. The Company expects the acquisition to be approximately one to two cents dilutive to GAAP and adjusted earnings per share in 2011, 2012 and 2013, and accretive thereafter.
Sadra Medical is developing the first fully repositionable device for percutaneous aortic valve replacement to treat patients with severe aortic stenosis. The company recently completed a series of European feasibility studies for its Lotus™ Valve System, which consists of a stent-mounted tissue valve prosthesis and catheter delivery system for guidance and placement of the valve. The low-profile delivery system and introducer sheath are designed to enable accurate positioning, repositioning and retrieval at any time prior to release of the aortic valve implant.
“We are pleased to complete the acquisition of Sadra Medical, and we look forward to leveraging our clinical expertise and existing sales channels in the fast-growing area of structural heart therapy,” said Ray Elliott, President and Chief Executive Officer of Boston Scientific. “Structural heart therapy is one of our Priority Growth Initiatives, and this acquisition marks another step toward realigning our portfolio through the execution of these initiatives.”
About Aortic Valve Disease
Aortic valve disease results in dysfunction of the aortic valve, one of the four valves that control the flow of blood in and out of the heart. Aortic valve stenosis is the process of thickening and stiffening in the valve, which can result in an abnormal narrowing of the aortic valve opening and reduction in blood flow. Aortic stenosis is a common problem affecting approximately 2 percent of people over age 65 and 4 percent of people over age 85. The current worldwide market for percutaneous aortic valve replacement is estimated at $400 million with projections to grow to $2 billion by 2016.
About Boston Scientific
Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties. For more information, please visit: www.bostonscientific.com.
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 new product launches and launch cadence, regulatory approvals, clinical trials, product performance, growth in the market for percutaneous aortic valve replacement and competitive offerings. 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; 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.