Boston Scientific to pay $325M for remainder of Calif. company
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The California offices of Millipede, which Boston Scientific said Thursday it will acquire full ownership following a successful clinical study.
Boston Scientific will buy out the remaining shares it doesn't already own of a California company after successful completion of a clinical study.
The Marlborough company will pay $325 million for the remaining shares of Millipede, it announced Thursday. Boston Scientific first purchased a $90-million share of Millipede in January, when it said it was given an option of eventually buying the remainder of the company.
The decision to purchase the rest of Millipede came after the completion of a first-in-human clinical study of a product strengthening the ring around a heart valve. That product, the IRIS Transcatheter Annuloplasty Ring System, is in development for patients with severe mitral regurgitation who aren't able to tolerate open-heart surgery.
The market for such products is estimated to reach $1 billion by 2021, Boston Scientific said.
The acquisition of Millipede allows Boston Scientific to expand its heart care portfolio and continues a buying spree this year for the company.
In November, Boston Scientific said it would buy the British cancer and vascular disease device firm BTG for $4.2 billion, its largest acquisition since 2015. This summer, it announced the purchase for up to $160 million of VENITI, a California obstructive disease company, along with California-based Claret Medical for up to $270 million, and Bedford prostate health firm Augmenix for up to $600 million.
Boston Scientific has cut some costs at the same time, including a cost-savings initiative announced in November aiming to reduce annual pre-tax operating expenses by $100 million to $150 million by the end of 2022. The company has said it would reduce its workforce in Burlington by 85 by the end of the year.
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