DOW JONES NEWSWIRES
Boston Scientific Corp. (BSX) acquired a development-stage
company focused on technology that is sometimes described as
pacemakers for the brain, in a deal valuing the company at $78
million.
The medical-device maker bought Intelect Medical Inc. with a
total cash payment of $60 million paid from cash on hand. The
payment is in addition to Boston Scientific's existing equity and
debt positions in Intelect, which it didn't disclose.
Intelect Medical's website said it has raised $11.3 million in
equity financing from Boston Scientific and Greatbatch Inc.
(GB).
Boston Scientific predicted the deal would start boosting
earnings in 2014. Late last year, the company outlined its
strategies to spark sales growth in the next few years. That
included a focus on products in the area of brain-stimulation
technology, which is Intelect's focus.
The company is developing a neuromodulation programming system
that would be the first to let clinicians visualize stimulation
fields in the brain and provide more precise targeting of therapy.
Neuromodulation involves implanting devices to alter activity in
the nervous system, often with electricity or drugs.
Boston Sci shares were up a penny at $7.49 in recent trading.
The stock has fallen 17% in the last year, while the broader market
has climbed.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com