(By Balaseshan)
Boston Scientific Corp. (NYSE:
BSX) said it has closed acquisition of Cameron Health Inc. of San Clemente, California and, as a result, added to its product portfolio the world's first and only commercially available subcutaneous implantable cardioverter defibrillator, called the S-ICD System.
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 6-year period after FDA approval.
The company currently expects the transaction to be about $0.01 dilutive in 2012 and about 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 the closing.
The acquisition is the capstone of a nearly 10-year relationship between the two companies during which Boston Scientific invested in Cameron Health during its ground-breaking research and product commercialization efforts.
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 – known as 'leads' – to be placed into the heart itself.
At the recent Heart Rhythm Society's 33rd Annual Scientific Sessions in Boston, Cameron Health announced initial results from the international "Evaluation oF FactORs ImpacTing CLinical Outcome and Cost EffectiveneSS (EFFORTLESS) Subcutaneous Implantable Defibrillator Registry" study that showed the S-ICD System is performing appropriately in real-world circumstances and still demonstrates positive results in a study of 230 patients.
Cameron Health also announced at the conference that the S-ICD System met the primary safety and efficacy endpoints defined in their 330-patient IDE clinical study. In addition, the U.S. Food and Drug Administration (FDA) Circulatory System Devices Panel recommended approval of the S-ICD System in April of 2012. FDA approval is expected in the first half of 2013.
BSX closed Friday's regular session up 0.88% at $5.71. The stock has been trading between $5.01 and $7.55 for the past 52 weeks.