Boston Scientific shops neuro businesses
This article was originally published in The Gray Sheet
Executive Summary
Firm is reportedly exploring plans to sell its neuromodulation and neurovascular businesses. A sale of both divisions could raise about $2 billion to aid debt repayment, Wells Fargo Securities analyst Larry Biegelsen suggests in recent report. The businesses generated 2009 sales of $285 million and $348 million, respectively. The neuromodulation division is Boston Scientific's fastest growing unit, but the firm may be willing to sell "because it is falling behind" competitors Medtronic and St. Jude Medical, "and it requires significant investment to reach its growth potential," Biegelsen said. Potential neuromodulation buyers include Johnson & Johnson and Abbott, while candidates for the neurovascular biz include Medtronic, St. Jude, Bard and Covidien, according to Biegelsen. Boston Scientific said in February it planned to divest several product lines over the next two years (1"The Gray Sheet" Feb. 15, 2010)
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