Boston Scientific to acquire Cameron Health for initial US$300m
8 March 2012
Boston Scientific Corporation (NYSE: BSX) announces the
exercise of its option to acquire California-based Cameron Health, Inc.
Developer of a subcutaneous implantable cardioverter defibrillator — the
Unlike conventional implantable cardioverter defibrillators (ICDs),
which require thin, insulated wires (leads) to pass through the
venous system and into the heart, the entire S-ICD System sits just
below the skin and leaves the heart and blood vessels untouched.
The technology has the potential to expand the reach of ICD therapy,
offering physicians and appropriate patients a new alternative to
traditional ICDs, while strengthening Boston Scientific's arrhythmia
The S-ICD System has received CE Mark and has been commercially
available in several major European countries since 2009. The system
has been clinically evaluated in a variety of studies and has been
implanted in more than 1,000 patients worldwide. US FDA approval has
been applied for and is expected in the first half of 2013.
Advantages of the acquisition
Hank Kucheman, Chief Executive Officer of Boston
Scientific, said: "The acquisition of Cameron Health builds on
Boston Scientific's commitment to introducing innovation in the CRM
space and represents an important part of our strategy to generate
top-line revenue and market share growth. We believe that the S-ICD
System represents a breakthrough treatment for patients at risk of
sudden cardiac arrest and strengthens our ability to deliver value
to physicians, their patients and healthcare systems around the
"We expect that the S-ICD System, combined with recent ICD and
CRT-D launches, upcoming pacemaker launches, and the recently
acquired WATCHMAN left atrial appendage closure device, will create
a compelling and highly differentiated portfolio of arrhythmia
management products," continued Kucheman.
A unique technology
"The S-ICD System represents a new category of rhythm management
devices that is unlike anything available today," said Kenneth A.
Ellenbogen, M.D., F.A.C.C., Professor of Medicine and Director of
the Electrophysiology Laboratory at the Medical College of Virginia.
"This system provides physicians with a new alternative in the
treatment of patients at risk for sudden cardiac arrest and should
become first-line therapy for patients who may benefit from not
having a lead in the heart."
"The S-ICD System was designed to eliminate the complications
associated with transvenous leads, creating an important new
treatment option for patients at risk of sudden cardiac arrest,"
said Kevin Hykes, President and CEO of Cameron Health. "We look
forward to joining the Boston Scientific team, which will allow us
to expand our commercialization efforts and bring this proven
therapy to more patients around the world."
The agreement calls for an upfront payment of $150 million,
payable upon transaction closing, an additional potential $150
million payment upon FDA approval of the S-ICD System, plus up to an
additional $1.050 billion of potential payments upon achievement of
specified revenue-based milestones over a six-year period following
The Company expects to fund these payments through the cash flow
of its business. The Company currently expects the transaction to be
approximately $0.01 dilutive in 2012 and approximately break-even in
2013 to earnings per share on an adjusted basis and more dilutive in
both years on a GAAP basis as a result of acquisition-related net
charges and amortization, which will be determined following closing
of the transaction. Closing of the transaction is subject to
customary conditions, including relevant antitrust clearance, and is
expected to occur in the second or third quarter of 2012.
The S-ICD System is restricted under US Federal law for
investigational use only and is not for sale in the US.
Source: Boston Scientific