) recently closed the acquisition of Bard EP, the
electrophysiology business of
C.R. Bard, Inc.
). The deal, valued at $275 million, is a step forward to
strengthening the company's foothold in the $2.5 billion global
With the market growing at a rapid pace of 10% a year, Boston
Scientific is confident about expanding its electrophysiology
business. The company is optimistic about the acquisition of Bard
EP, which generated sales of $111 million in the last fiscal.
According to BSX, Bard EP will provide an extensive line of
solutions for cardiac catheter ablations and other EP tools for
the detection and treatment of abnormal heart beats.
According to the company, Bard EP will be integrated into
Boston Scientific's existing electrophysiology business under its
Rhythm Management unit. For fiscal 2013, the company expects the
acquisition to be neutral to its adjusted earnings per share,
while for 2014, it is expected to be accretive by a penny.
However, for both fiscals, acquisition-related charges as well as
amortization will have a dilutive impact on GAAP earnings.
Currently, Boston Scientific's electrophysiology business
comprises only 2% of its overall product portfolio. In the last
fiscal, the global net sales of Electrophysiology products were
$147 million, while U.S. net sales were $108 million. Currently,
the company is striving to strengthen its foothold in this
business through innovations and acquisitions.
In 2012, BSX received Health Canada and CE Mark approval for
its Blazer Open-Irrigated Catheter. This latest radiofrequency
ablation (RFA) catheter is designed to treat a variety of
arrhythmias such as atrial fibrillation, atrial flutter,
ventricular tachycardia and other supraventricular
Additionally, on Oct 9, 2012, Boston Scientific acquired
Rhythmia Medical, Inc., a developer of next-generation mapping
and navigation solutions for use in cardiac catheter ablations
and other electrophysiology procedures, including atrial
fibrillation and atrial flutter. The company received CE Mark
approval for the Rhythmia technology in the second quarter of
2013 and expects the U.S. FDA approval in the second half of the
We expect Boston Scientific's recent endeavors to give a
competitive edge in the fast-growing electrophysiology market.
This strategy is significant given the comparatively poor
performance of its core segments of stents and
The stock currently carries a Zacks Rank #3 (Hold). Other
better-placed stocks like
Align Technologies Inc.,
Mindray Medical International Limited
), which carry a Zacks Rank #1 (Strong Buy), are expected to do
ALIGN TECH INC (ALGN): Free Stock Analysis
BARD C R INC (BCR): Free Stock Analysis
BOSTON SCIENTIF (BSX): Free Stock Analysis
MINDRAY MEDICAL (MR): Free Stock Analysis
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