Boston Scientific completes acquisition of Cameron Health

11 June 2012

Boston Scientific Corporation (NYSE: BSX) has completed the acquisition of San Clemente-based Cameron Health, Inc., adding the company's subcutaneous implantable cardioverter defibrillator, the S-ICD System, to its portfolio.

 Developed by Cameron Health, the entire S-ICD System sits just below the skin. This leaves the heart and blood vessels untouched, offering patients an alternative to conventional transvenous ICDs, which require thin, insulated wires to be placed into the heart itself.

"We are pleased to complete the acquisition of Cameron Health, furthering Boston Scientific's commitment to introducing innovation in the CRM space," said Hank Kucheman, chief executive officer at Boston Scientific. "Boston Scientific now provides physicians and their patients with an option to choose either the industry's thinnest, longest-lasting transvenous ICD or the world's first and only commercially available completely subcutaneous ICD."

"We believe that the combination of Cameron Health's breakthrough technology and Boston Scientific's already strong arrhythmia management product portfolio and commercial capabilities will help unlock the enormous potential of the S-ICD System," said Kevin Hykes, former chief executive officer of Cameron Health, who will continue to lead the S-ICD team at Boston Scientific. "Equally exciting is the promise of next-generation subcutaneous technology that we expect will continue to expand the reach of ICD therapy to more patients."

The S-ICD System received CE Mark in 2009 and is commercially available in many countries in Europe, as well as New Zealand. To date, more than 1,300 devices have been implanted in patients around the world. The device is limited under US law to investigational use only, and is not available for sale in the US. FDA approval is expected in the first half of 2013.

In countries where it is approved, the S-ICD System establishes a new class of protection from sudden cardiac arrest that offers physicians more options in how to best treat their patients. While it provides the same defibrillation protection of transvenous ICDs, the S-ICD System also preserves the patient's venous system, which may be advantageous to many patients.

Payment terms

 Under the terms of the agreement, Boston Scientific paid $150 million at closing. The agreement calls for an additional potential payment of $150 million to be made upon FDA approval of the S-ICD System and up to an additional $1.050 billion of potential payments to be made upon the achievement of specified revenue-based criteria over a six-year period following FDA approval.