Interventional device developer Boston Scientific announced it intends to explore the sale of its cardiac surgery and vascular surgery businesses. The Natick, Mass.-based firm said the move is part of its plan to review its portfolio of assets and divest those considered non-strategic, and to strengthen its operating and financial performance.
Paul LaViolette, chief operating officer of Boston Scientific noted that if finalized, the sale will support the company’s efforts to focus resources on its core businesses and improve its operating and financial performance.
He said that Boston Scientific is in discussions with several potential buyers, and that it expects the process to take a number of months.
In recent months the firm has retained its endosurgery group, entered into an agreement to assume sole management and control of the pain management business from Advanced Bionics and sell the Advanced Bionics auditory business, monetized parts of its portfolio, and begun developing an expense and head count reduction plan, which it said it plans to announce next quarter.
LaViolette added that Boston Scientific continues to focus on the recovery of the drug-eluting stent and cardiac rhythm management markets.
Boston Scientific acquired the cardiac surgery business in April 2006 as part of its purchase of Guidant. The San Jose, Calif.-based business unit maintains a manufacturing facility in Dorado, Puerto Rico, employs approximately 450 people, and had 2006 revenues of $189 million.
The company established its vascular surgery business unit with the acquisition of Meadox Medicals in 1995. The business had 2006 revenues of $86 million and has approximately 250 employees, primarily located at its manufacturing site in Wayne, N.J.