Boston Scientific's Buying Spree Continues, This Time in EP

CEOs of medical device start-ups with interventional technologies can be forgiven if they are seen camping outside of Boston Scientific Corp. 's Natick, MA-headquarters these days. With this month's $115 million cash deal to acquire electrophysiology (EP) company Cardiac Pathways Corp. , that makes five acquisitions for Boston Scientific already this year [See Deal]. (See "Boston Scientific: An Acquiror Once More,"IN VIVO, March 2001 [A#2001800049.) The previous four were Catheter Innovations Inc. (catheter-based venous access products for drug delivery), Quanam Medical Corp. (drug-coated stents), Interventional Technologies Inc. (minimally-invasive cardiology devices, including a Cutting Balloon catheter), and Embolic Protection Inc. (system to capture emboli during interventional procedures) [See Deal], [See Deal], [See Deal], [See Deal]. Boston Scientific's dealmaking flurry is particularly notable given the relative inactivity of other large device companies on the acquisition front, and the cold shoulder the public market has given to the device sector.

The Cardiac Pathways acquisition reflects Boston's apparent continuing commitment to a clinical area—electrophysiology—that, just a few years ago, it was thinking about exiting, despite having a market-leading product, the Blazerablation...