NATICK, Mass. (AP) -- Medical device maker Boston Scientific Corp. said Wednesday it will pay up to $375 million for Atritech Inc., which makes a device that is designed to prevent strokes in patients with atrial fibrillation.
Boston Scientific will pay $100 million upfront for Atritech, a privately held company based in Plymouth, Minn. It could pay another $275 million based on regulatory and sales targets through 2015. Atritech makes the Watchman Left Atrial Appendage Closure device, which is designed to prevent blood clots from moving out of the heart, where they can cause embolism or stroke. It is intended to be an alternative to anti-clotting drugs.
Atrial fibrillation is a condition in which the upper and lower chambers of the heart contract rapidly and erratically instead of forming a coordinated beat with the two lower chambers. That can cause blood to pool in the heart, forming clots that can cause strokes. Boston Scientific said those clots develop in the left atrial appendage of the heart. The Watchman device closes the appendage, preventing blood clots from getting into the bloodstream. The device was approved in Europe in 2009 but is not on the market in the U.S.
Atritech is enrolling patients in a clinical trial that is intended to help it win marketing approval for Watchman, Boston Scientific said. In a previous study of 800 patients, Atritech said the Watchman device reduced the risk of stroke, systemic embolism and death related to heart disease by 38 percent compared to warfarin, an anticoagulant drug.
Boston Scientific will pay for Atritech with cash on hand and expects to close the deal during the first quarter. The acquisition will reduce its annual profit by 1 to 2 cents per share in 2011, 2012, and 2013, and add to its profit afterward. Excluding amortization charges, it expects the deal to reduce its profit by about a penny per share in 2011 and 2012.
Shares of Boston Scientific dipped 7 cents to $7.26 in morning trading.
Boston Scientific will pay $100 million upfront for Atritech, a privately held company based in Plymouth, Minn. It could pay another $275 million based on regulatory and sales targets through 2015. Atritech makes the Watchman Left Atrial Appendage Closure device, which is designed to prevent blood clots from moving out of the heart, where they can cause embolism or stroke. It is intended to be an alternative to anti-clotting drugs.
Atrial fibrillation is a condition in which the upper and lower chambers of the heart contract rapidly and erratically instead of forming a coordinated beat with the two lower chambers. That can cause blood to pool in the heart, forming clots that can cause strokes. Boston Scientific said those clots develop in the left atrial appendage of the heart. The Watchman device closes the appendage, preventing blood clots from getting into the bloodstream. The device was approved in Europe in 2009 but is not on the market in the U.S.
Atritech is enrolling patients in a clinical trial that is intended to help it win marketing approval for Watchman, Boston Scientific said. In a previous study of 800 patients, Atritech said the Watchman device reduced the risk of stroke, systemic embolism and death related to heart disease by 38 percent compared to warfarin, an anticoagulant drug.
Boston Scientific will pay for Atritech with cash on hand and expects to close the deal during the first quarter. The acquisition will reduce its annual profit by 1 to 2 cents per share in 2011, 2012, and 2013, and add to its profit afterward. Excluding amortization charges, it expects the deal to reduce its profit by about a penny per share in 2011 and 2012.
Shares of Boston Scientific dipped 7 cents to $7.26 in morning trading.