Boston Scientific Corp., Natick, Mass., is looking to unload its cardiac-surgery and
vascular-surgery divisions as part of an ongoing plan to divest itself of nonstrategic
assets, according to a news release issued by the company.
The announcement comes on the heels of one made last month that the medical-device maker
plans to sell its fluid-management business. This is another step we are making on our
plan to divest nonstrategic assets, monetize our investment portfolio and bring our
expenses and head count in line with our revenue, said the companys chief operating
officer, Paul LaViolette, in a news release about the planned sales.
Boston Scientific has seen a reduction in its profit margins over the past year due in
part to a class-action lawsuit filed by patients who received defibrillators made by
subsidiary company Guidant Corp. In July, Boston Scientific agreed to pay $195 million to
settle claims made by approximately 4,000 patients that Guidant didnt inform them of
potentially life-threatening flaws in the device.
Boston Scientific acquired the cardiac-surgery unit that it is now looking to divest when
it purchased Guidant in April 2006. The unit employs 450 workers and generated $189
million in revenue in 2006.
The devicemaker acquired the vascular-surgery division in 1995 with the purchase of Meadox
Medical. The division, which has approximately 250 employees, had revenue of $86 million
in 2006. -- by Shawn Rhea
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