MARLBOROUGH, Mass.,
Oct. 6, 2021 /PRNewswire/
-- Boston Scientific Corporation (NYSE: BSX) today announced
that it has entered into a definitive agreement to acquire Baylis
Medical Company Inc. for an upfront payment of $1.75 billion, subject to closing adjustments.
The acquisition will expand the Boston Scientific electrophysiology
and structural heart product portfolios to include the
radiofrequency (RF) NRG® and VersaCross®
Transseptal Platforms as well as a family of guidewires, sheaths
and dilators used to support left heart access. These platforms
have advanced transseptal puncture and are clinically proven to
enhance safety, efficacy and efficiency when crossing the atrial
septum to deliver therapies in the left side of the heart, such as
atrial fibrillation ablation, left atrial appendage closure (LAAC)
and mitral valve
interventions.i,ii,iii Baylis
Medical Company is expected to generate net sales approaching
$200 million in 2022, having achieved
double-digit year-over-year sales growth during each of the past
five years.
"The talented and innovative Baylis Medical Company team,
combined with these transseptal platforms, will enhance our efforts
to improve procedural efficiencies with physician tools designed to
make left atrial access safer and more predictable, with a focus on
patient outcomes," said Mike
Mahoney, chairman and chief executive officer, Boston
Scientific. "A leader in many of the fastest growing markets in our
industry, we believe that Baylis Medical Company will add
meaningful revenue, operating income, and new research and
development capabilities across multiple Boston Scientific
businesses, while complementing existing offerings within our
electrophysiology and structural heart portfolios."
Physicians have traditionally relied on a mechanical needle to
pass through the septum and access the left side of the heart,
which can present safety concerns and placement challenges based on
varying patient anatomy. Rather than relying solely on mechanical
force, the Baylis Medical Company platforms facilitate predictable
and safe transseptal access by using RF energy – a method shown to
increase efficiency, and improve the safety and efficacy of
transseptal puncture during left heart
procedures.i,ii,iii The new VersaCross platform
further streamlines transseptal crossing procedures and therapy
delivery by offering the same benefits while eliminating potential
wire and sheath exchanges, which may help mitigate risks during
procedures.
"As a leading innovator in left heart access solutions, we
develop advancements that help physicians deliver critical,
high-precision therapies, which raise the standard of care for
patients," said Kris Shah,
president, Baylis Medical Company. "We look forward to making these
life-changing technologies available to more patients across the
globe through the significant commercial reach of Boston
Scientific."
Baylis Medical Company received U.S. Food and Drug
Administration (FDA) 510(k) clearance for the NRG platform in 2008
and the technology has since been used in more than one million
procedures. The company received FDA 510(k) clearance for the
VersaCross platform in 2020. These platforms are complemented by
the company's family of guidewires, sheaths and dilators, which are
designed for use in left-sided diagnostic, ablation, mitral and
LAAC procedures.
The transaction is anticipated to close in the first quarter of
2022, subject to customary closing conditions, and is expected to
be approximately one cent accretive
to adjusted earnings per share in 2022 and increasingly accretive
thereafter. On a GAAP basis, the transaction is expected to be less
accretive, or dilutive as the case may be, in 2022 and less
dilutive or increasingly accretive thereafter, as the case may be,
due to amortization expense and acquisition-related net
charges.
Additional information about this transaction is available on
the Events and Presentations section of the Boston Scientific
investor relations website.
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 40
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 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.
CONTACTS:
Laura Aumann
Media Relations
(651) 582-4251
Laura.Aumann@bsci.com
Lauren Tengler
Investor Relations
(508) 683-4479
BSXInvestorRelations@bsci.com
i Journal of the American Heart Association,
September 17, 2003. DOI:
10.1161/JAJA. 113000428
ii Winkle et al. Heart Rhythm, Volume 8, Issue 9,
2011. DOI 10.1016/j.hrthm.2011.04.032
iii Inohara et al. J Interv Card Electrophys, 2021;
in press (DOI: 10.1007/s10840-020-00931-7)
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SOURCE Boston Scientific Corporation