BSX » Topics » Boston Scientific to Share Rights to Guidants Drug-Eluting Stent Portfolio

This excerpt taken from the BSX 8-K filed Jan 10, 2006.

Boston Scientific to Share Rights to Guidant’s Drug-Eluting Stent Portfolio


Natick, MA (January 8, 2006) – Boston Scientific Corporation (NYSE: BSX) announced today that it has executed a binding definitive agreement with Abbott (NYSE: ABT) under which Abbott will purchase Guidant Corporation’s (NYSE: GDT) vascular intervention and endovascular businesses, assuming completion of Boston Scientific’s proposed acquisition of Guidant (announced in a separate Boston Scientific press release issued today).


As part of this agreement, Boston Scientific will share rights to Guidant’s drug-eluting stent (DES) portfolio with Abbott, providing Boston Scientific a second DES platform.


Boston Scientific had announced its intention to divest Guidant’s vascular intervention and endovascular businesses and to share rights to Guidant’s DES portfolio in its initial proposal to acquire Guidant on December 5, 2005.  Boston Scientific believes that the execution of its agreement with Abbott will enable the Company to rapidly secure antitrust approval of the acquisition of Guidant.


Under the terms of the agreement with Abbott, Guidant’s vascular intervention and endovascular businesses will be purchased by Abbott for a total consideration of $4.3 billion.  This amount includes an upfront payment of $3.8 billion in cash on or around the closing of Boston Scientific’s acquisition of Guidant, a payment of $250 million upon U.S. Food and Drug Administration (FDA) approval of an everolimus-based DES product, and an additional payment of $250 million upon a similar approval in Japan.  These contingent payments are due if the requisite approvals are received anytime within 10 years of closing this transaction.


In addition to receiving the $3.8 billion in initial purchase price at or around the closing of the Guidant transaction, Abbott has agreed to provide to Boston Scientific a $700 million loan in the form of a five-year subordinated note bearing interest at 5.25 percent.  Accordingly, Boston Scientific will receive $4.5 billion in cash from Abbott on or around the closing date of the Guidant transaction.





Boston Scientific and Abbott have agreed that Abbott will supply Boston Scientific, on a private label basis, with Guidant DES products.  This interim supply agreement will facilitate a transitioning of the shared DES rights to Boston Scientific.  These rights include rights to intellectual property and technology transfers, sharing of regulatory and clinical trial assets and the rights to independently iterate, manufacture and commercialize DES technology.   Drug-eluting stents sold by Abbott will be separately branded, priced and marketed.


The transaction is subject to a limited number of closing conditions, including receipt of the required regulatory approvals.


“Our agreement with Abbott to divest Guidant’s vascular intervention and endovascular businesses demonstrates our commitment to address potential antitrust issues raised by our proposed acquisition of Guidant, and should enable us to complete the acquisition of Guidant quickly,” said Jim Tobin, President and Chief Executive Officer of Boston Scientific.  “In addition, sharing rights to Guidant’s DES portfolio will enable Boston Scientific to offer both paclitaxel-eluting and everolimus-eluting stents to interventional cardiologists and their patients.”


Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki