On Wednesday, after Boston Scientific (NYSE:BSX) announced the acquisition of Minnesota startup BridgePoint Medical, the startup’s CEO said that he is excited by the prospect of having the company’s technology marketed by Boston Scientific’s sales and marketing operation.
Describing Boston Scientific as the “leader” in the interventional cardiology field and the cath lab, Denis Harrington said that BridgePoint Medical’s product “fit into Boston Scientific’s bag.”
BridgePoint Medical makes catheters for the treatment of chronic coronary totalocclusions providing a minimally invasive therapy in lieu of coronary bypass surgery.
While the deal is a definite boon for BridgePoint, the acquisition largely brings just “another arrow” in Boston Scientific’s quiver, said Piper Jaffray senior analyst Thomas Gunderson
“BSX has well established global distribution for cath lab products,” said Gunderson in an email. “They will be able to take this FDA-cleared CTO catheter and leverage distribution faster and farther than a small company can.”
He added that the Boston reps would now have another reason “to show something new to the doc and lab manager.”
In other words, the deal is a tuck-in acquisition that is not expected to move the needle in terms of revenue very far. And Boston Scientific admitted as much when in announcing the deal, the Natick, Massachusetts device maker said that the acquisitionwill not have a material impact on Boston Scientific’s 2012 adjusted earnings and will be modestly accretive in the future.
Perhaps that’s why the stock barely moved in trading Wednesday.
[Photo Credit: Big Stock Photo]
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By Arundhati Parmar
Arundhati Parmar is the Medical Devices Reporter at MedCity News. She has covered medical technology since 2008 and specialized in business journalism since 2001. Parmar has three degrees from three continents - a Bachelor of Arts in English from Jadavpur University, Kolkata, India; a Masters in English Literature from the University of Sydney, Australia and a Masters in Journalism from Northwestern University in Chicago. She has sworn never to enter a classroom again.More posts by Author
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