Navigation Links
Stryker Announces Definitive Agreement to Acquire the Neurovascular Division of Boston Scientific for $1.5 Billion

KALAMAZOO, Mich., Oct. 28 /PRNewswire-FirstCall/ -- Stryker Corporation (NYSE: SYK) announced today a definitive agreement to acquire the assets of the Neurovascular division of Boston Scientific in an all cash transaction for $1.5 billion, which includes $100 million of milestone payments. The purchase price also reflects consideration for the present value of the future tax benefit for Stryker based on the asset purchase structure of the transaction. Boston Scientific Neurovascular is a global leader in the approximately $900 million worldwide neurovascular market, which includes products used for the minimally invasive treatment of hemorrhagic and ischemic stroke. With sales in 2009 of $348 million, Boston Scientific Neurovascular provides patients and physicians with the broadest offering of devices for the treatment of neurovascular disease, including detachable coils, stents, microcatheters and guidewires.

Under the terms of the agreement, Boston Scientific will receive $1.4 billion at closing with additional consideration of up to $100 million payable upon specified milestone events, including the commercialization of the next generation of Target™ detachable coils used to treat hemorrhagic stroke, and the transfer of specific manufacturing facilities related to the Neurovascular operation to Stryker, which is anticipated to occur over a 24-month period following the closing.

The closing of the transaction is subject to expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act, similar requirements in other countries, and other customary closing conditions.

"The acquisition of Boston Scientific Neurovascular is an important strategic move as it positions us as a leader in the highly attractive neurovascular space, which we believe is well positioned to remain one of the fastest growing and most innovative sectors in medical technology," said Stephen P. MacMillan, Chairman, President and Chief Executive Officer of Stryker. "Today, through our Instruments, Orthopaedics and Spine divisions, Stryker offers complementary neurosurgery products to many of the same customers called on by Boston Scientific Neurovascular.  Going forward, the proposed acquisition allows us to substantially broaden our product offerings and relevance to these customers and over time, we believe will afford us with a unique competitive advantage. We are highly enthusiastic regarding the prospects for Boston Scientific Neurovascular's next generation portfolio of coils and other diagnostic and therapeutic devices, which are expected to provide the opportunity to regain momentum and return to market leading growth."

Boston Scientific Neurovascular sells products through a direct sales force in the U.S. and a combination of direct sales force and distributors outside the U.S.  From 1997 to 2005, Boston Scientific Neurovascular expanded its core hemorrhagic stroke device offerings to include new detachable coils in the GDC® family as well as a new family of Matrix® detachable coils. Additionally, Boston Scientific Neurovascular entered the developing ischemic stroke market with stent and balloon catheter launches. Looking ahead, Stryker is excited about the pending launch of a series of next generation neurovascular products with enhanced features and benefits which are expected to drive accelerating top line growth.

According to the American Heart Association's 2010 Heart Disease & Stroke Statistics, stroke is the third most common cause of death and a leading cause of serious, long-term adult disability in the U.S. Each year, approximately 795,000 people in the U.S. experience a stroke. The majority of victims (87%) have an ischemic stroke, which occurs when arteries are blocked by blood clots or other deposits or narrowed due to atherosclerosis; others experience a hemorrhagic stroke, which occurs when a brain aneurysm bursts. The total economic cost of stroke is estimated to be $73 billion annually in the U.S. alone.

The Stryker Neurovascular business will be headed by Mark Paul, who is currently President of Boston Scientific Neurovascular. Upon completion of the acquisition, Mr. Paul will report to Curt Hartman, Vice President and Chief Financial Officer of Stryker.

Upon closing, the transaction is expected to be breakeven to slightly accretive to Stryker's 2011 earnings per share excluding acquisition and integration-related charges. The transaction is expected to close in the fourth quarter of 2010.

Barclays Capital served as Stryker's exclusive financial advisor in connection with this transaction.

Stryker will host a conference call for financial analysts at 8:30 a.m., Eastern Time, today to discuss additional details regarding the proposed transaction. To participate in the conference call dial 866-788-0543 (domestic) or 857-350-1681 (international) and enter the participant passcode 31576646. A simultaneous webcast of the call will be accessible via the Company's website at The call will be archived on this site for 30 days.

A recording of the call will also be available from 11:30 a.m., Eastern Time, on October 28, 2010, until 11:59 p.m., Eastern Time, on November 4, 2010. To hear this recording, dial 888-286-8010 (domestic) or 617-801-6888 (international) and enter the passcode 61044776.

This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause the Company's actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: the Company's ability to consummate and successfully integrate the acquisition of the Neurovascular division of Boston Scientific; weakening of economic conditions that could adversely affect the level of demand for neurovascular products; legislative and regulatory actions including the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvement Act; unanticipated issues arising in connection with clinical studies and otherwise that affect the FDA's approval of new neurovascular products; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; changes in the competitive environment; and other risks and uncertainties contained in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Stryker is one of the world's leading medical technology companies and is dedicated to helping healthcare professionals perform their jobs more efficiently while enhancing patient care.   The Company provides innovative orthopaedic implants as well as state-of-the-art medical and surgical equipment to help people lead more active and more satisfying lives.  For more information about Stryker, please visit

SOURCE Stryker Corporation
Copyright©2010 PR Newswire.
All rights reserved

Related biology technology :

1. ETEX Corporation Announces Distribution Agreement With Stryker
2. Stryker Statement in Response to the Indictment of Its Biotech Division
3. Stryker to Present at Investor Conferences
4. Stryker Announces Organizational Changes
5. Stryker to Host Conference Call on October 16, 2008
6. PDL BioPharma Announces Exchange to Retire 2.00% Convertible Senior Notes Due February 15, 2012
7. Signal Genetics Announces Establishment of Scientific Advisory Board
8. Sirius Genomics Announces Issuance of U.S. Patent
9. Molecular Detection Inc. Announces MSSA Label Expansion and Benelux Distribution Agreement for Its Detect-Ready™ MRSA Screening Test
10. Sigma-Aldrich Announces Pricing of Senior Notes
11. BSI Announces Global Launch of Clinical Strategy Review for CE Marking
Post Your Comments:
(Date:1/17/2017)... Jan. 17, 2017   Pulmatrix, Inc . (NASDAQ: ... developing innovative inhaled therapies to address serious pulmonary diseases, ... infections in the lungs of CF patients, PUR1900, has ... by the U.S. Food & Drug Administration. ... to speed the development of novel drugs against important ...
(Date:1/17/2017)...  Only nine percent of U.S. consumers believe pharmaceutical ... 16 percent believe health insurance companies do, according to ... of U.S. adults believe health care providers (such as ... hospitals (23%). "We are in the midst ... , vice president of reputation management and public affairs ...
(Date:1/17/2017)... (PRWEB) , ... January 17, 2017 , ... Pono ... balanced, peaceful and healthy lifestyle, announced today the official launch of its much-anticipated Pono ... the mind. , In development for over a year, the patented Pono ...
(Date:1/17/2017)... ... January 17, 2017 , ... Diagenode, ... recently announced a collaboration with the Heidelberg University Hospital and the German Cancer ... preparation, following the company’s successful launch of its CATS (Capture and Amplification ...
Breaking Biology Technology:
(Date:12/16/2016)... -- Research and Markets has announced the addition of ... 2021" report to their offering. ... The biometric vehicle access system market, in ... 14.06% from 2016 to 2021. The market is estimated to be ... Million by 2021. The growth of the biometric vehicle access system ...
(Date:12/15/2016)... , Dec 15, 2016 ... Research and Markets has announced the addition ... offering. The report forecasts the global military biometrics market ... The report has been prepared based on an in-depth market ... and its growth prospects over the coming years. The report also includes ...
(Date:12/12/2016)... -- Researchers at Trinity College, Dublin, are opening up ... material with Silly Putty. The mixture (known as "G-putty") ... sense pulse, blood pressure, respiration, and even the ... The research team,s findings were published Thursday in ... Due ...
Breaking Biology News(10 mins):