Terumo Gets Its Toe Wet in the US Cardiovascular Market

After a breathtaking couple of years during which they drove M&A activity in medical devices to one high after another, cardiovascular device companies, particularly US firms, seem to be taking a rest. With its stock price sagging, Boston Scientific Corp. has been all but out of the deal-making arena for the last year or so. St. Jude Medical Inc. suffers from similar problems. At press time, Johnson & Johnson was negotiating to buy Centocor Inc. , at least in part for its anti-platelet agent, ReoPro, which could prop up its deflated stent business, but which also suggests the company is turning its attention in cardiovascular from devices to drugs. Medtronic Inc. could still play, but after doing $8 billion in acquisitions over eight months in 1998, it's earned a breather. Guidant Corp. has plenty of money and energy—but beyond it, there's hardly a robust list of potential deal-makers.

What about Terumo Corp? The Japanese company's $1.7 billion in annual sales—with a $4 billion market cap—would qualify it as...