Boston Scientific completes Guidant takeover

Boston Scientific Corporation’s $27 billion (?15.1 billion) takeover of Guidant has created “one of the largest medical technology companies in the world”.

Guidant, sold the vascular arm of their business to Abbott Pharmaceuticals ? with which it has several previous management links – for $4.1 billion, with Boston Scientific buying the cardiovascular arm. As a result, Guidant has been de-listed from the stock-exchange.

Boston Scientific’s chairman, Pete Nicholas, said it was a “momentous day” for employees, shareholders, doctors and patients.

Jim Tobin, president and chief executive, commented: “The new Boston Scientific will be a broadly diversified medical technology company that we believe will command a market valuation closer to our peers and generate significant upside potential for our stockholders.”

As part of the deal, Abbott will give Boston Scientific a $250 million “milestone payment” for the FDA’s approval of Guidant’s drug-eluting stent, a similar payment for approval in Japan, a $900 million interest-bearing loan, and it has also purchased $1.4 billion of Boston Scientific shares.

Boston Scientific has a base in St Albans, Herts, which employs approximately 120 people. It claims to employ 16,000 worldwide and has developed various types of widely-used stents since the late-sixties. Johnson & Johnson and Medtronic are two of its major competitors.

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