Boston Scientific explores IPO of interest in endosurgery group

Boston Scientific has announced that its board of directors has authorised the management of the firm to investigate the possibility of an initial public offering (IPO) of a minority interest in its endosurgery group.

Under proposed plans, Boston Scientific would establish a publicly-traded separated company following the sale of around 20 per cent of the group, with the new firm remaining a majority-owned subsidiary of the company.

The company lists potential benefits of such a move as unlocking value of the group to shareholders, improved visibility into the growth of this market compared to others, enhanced employee and management focus in this field and the generation of funding to speed up the company’s debt repayment plans.

Jim Tobin, chief executive officer and president of Boston Scientific, said: “The endosurgery group has a remarkably consistent record of growth and profitability, having achieved leading market shares for most of its key product lines.”

He added that the possible public offering of an interest in the group would help the firm achieve its goals of unlocking value for shareholders while retaining its market position in the medical device industry.

The company recently announced that it is to participate in the forthcoming Lehman Brothers Health Care Conference in Miami, Florida later this month.