Boston Scientific to wholly retain endosurgery group

Following the completion of its examination of an initial public offering of a minority share in its endosurgery group, Boston Scientific has concluded that the unit will remain a wholly-owned subsidiary of the company.

This statement came as part of an update regarding the plans to boost operating and financial performance as part of a broader intention to enhance sustainable shareholder value, restore growth and develop a diversified medical device company.

Boston Scientific also noted that the upcoming months would see a number of statements from the firm that will progress the firm towards its previously mentioned goals of divesting its non-strategic assets and reducing expenses and staff numbers.

Jim Tobin, president and chief executive officer of Boston Scientific, said: “Our decision to retain the endosurgery group is the first in a series of steps we plan to take to advance our strategy of restoring growth, increasing shareholder value and continuing to build a broad, diversified company.”

He added that the sale of part of its endosurgery division would have reduced the shareholder value of the firm, with the clear benefits of wholly retaining the unit more than compensating for any advantage gained through divesting a minority share.

In June 2007, Boston Scientific acquired Israeli firm Remon Medical Technologies for an undisclosed fee, while local newspaper Ha’aretz claimed the deal was worth over $300 million (150 million pounds).