Stryker to Buy BSX's Neuromodulation Unit?
BY LAUREN UZDIENSKI, AUGUST 18, 2010
Bloomberg is reporting that Stryker is in exclusive talks to acquire Boston Scientific's neuromodulation unit, which makes implantable spinal cord stimulation devices for chronic pain. Citing three unnamed sources, Bloomberg says Stryker is planning to pay somewhere around $1.4 to $1.5 billion in cash for the business.
In their most recent 10-K, Boston Scientific said their Precision Spinal Cord Stimulation system has a technological advantage over competitive products with "Multiple Independent Current Control," which the company says can "allow the physician to target specific areas of pain more precisely." The company is also conducting a study to evaluate the efficacy and cost-effectiveness of spinal cord stimulation compared to re-operation in patients with failed back surgery syndrome, noting that the study could result in spinal cord stim being used earlier in the continuum of care. The company received FDA approval for two new lead splitters for the device in June, which can enable multi-site placement of up to four leads. In 2009, total sales of neuromodulation products were $285 million.
The deal is expected to be announced sometime next week.
