BOSTON SCIENTIFIC CORPORATION ANNOUNCES AGREEMENT
TO ACQUIRE SCHNEIDER
Natick, Mass. (June 16,
1998)--Boston Scientific Corporation (NYSE:BSX) announced today
the signing of a definitive agreement to acquire
Schneider Worldwide, a member of the Medical Technology
Group of Pfizer Inc. (NYSE:PFE), for approximately $2.1
billion in cash. Headquartered in Bulach, Switzerland,
Schneider develops, manufactures and markets a broad range
of catheter-based technologies used in less invasive
medicine. Its product offerings include stents, angioplasty
devices, and accessories for both coronary and peripheral
applications. In 1997, Schneider reported sales of
approximately $330 million. The transaction is expected to
close later this year and is subject to the usual
regulatory approvals. It is expected that the transaction
will be modestly dilutive to 1999 results.
combination will enable Boston Scientific to immediately
become a participant in a number of high growth areas of
interventional medicine in which it currently does not compete.
With the technology and intellectual property platform
of Schneider, Boston Scientific will be able to
offer rapid exchange catheters in the U.S. with both a
wide range of balloon angioplasty catheter devices and
coronary stent delivery systems. Boston Scientific will
also gain rights to broaden its product offering to
include nylon balloon technology. Also, with the
Schneider Wallstent, Boston Scientific will, for the first
time, be able to offer a number of new non-coronary
stent products including U.S. FDA approved applications
for the iliac, femoral and TIPS (transjugular
intrahepatic portosystemic shunt).
with it the NAMIC business, a global leader in the
manufacture and sale of a broad line of products used for
controlled delivery and monitoring of fluids during
angiography and angioplasty procedures. The NAMIC product
line will enable Boston Scientific to broaden its
product offerings to catheterization labs around the
world as a full service specialty supplier.
combination should also complement many research and
development programs at Boston Scientific. Schneider has been
investing in many new technology areas of interest
including carotid stenting, stent grafting, coronary
radiation therapy, and biomaterials and
Commenting on the transaction, Pete Nicholas, Chairman and
Chief Executive Officer of Boston Scientific, noted,
"We are very pleased to welcome the worldwide
Schneider organization to the BSC family. The addition of
Schneider will significantly expand our global presence and
product offering for the treatment of patients suffering
from coronary and peripheral vascular disease.
Schneider, like Boston Scientific, has been an early pioneer
and leader in the field of interventional medicine.
We look forward to continuing our efforts together
as a new and stronger company."
release contains forward looking statements with respect
to the opportunities offered by a Boston
Scientific/Schneider combination. The Company wishes to caution the
reader of this press release that actual results may
differ from those discussed in the forward looking
statements and may be adversely affected by, among other
things, risks and uncertainties related to competitive
offerings and new product launches, timing and scope of
regulatory approvals, research and development programs,
continued international expansion and foreign exchange
fluctuations, intellectual property rights, the ability of the
Company to implement its overall business strategy and
other factors described in the Company�s filings with
the Securities and Exchange Commission.
Scientific is a worldwide developer, manufacturer and
marketer of medical devices whose products are used in a
broad range of interventional medical
CONTACT: Larry Best (508-650-8450)
BSX had to buy Schneider for the nylon balloon
material license.Yes, they will make good use of the Rx
patent, but without the nylon license, the Nir stent
(mounted on a nylon Ranger balloon could have been
doomed). Even though they paid way too much for Schneider,
the reality they were faced with was they couldn't
afford not to buy them.Everyone thinks BSX bought
Schneider for Rx...the real reason that drove them to pay
$2.1 billion was they needed nylon or Nir and their
nylon balloons were in serious jeapordy (Cordis
litigation). Now they have a balance sheet with potentially
more than $2.5 billion in debt to go along with
negative cash flow. Why is Wall Street rewarding BSX for
The rapid exchange patent is only the 'tip of the
iceberg' if you will. There is also raw material
(polymers) intelectual property shared by Schneider and
Cordis that has, until now, prevented BSX from
developing their POBA and Stent balloon technologies with
more puncture resistant attributes. Polymers such as
Pebax, Nylons (polyamides), to name a few, will now be
legally available to BSX. I understand their R&D groups
have been busy in anticipation of the Schneider
Analysts agree the NIR is #1 and they
have publicly stated so.
If you dont think so,
please give us some proof in terms of sales
Otherwise, I think we give the analysts more credence(I know
its hard to believe).
There is only one reason that BSX bought
It is not for their stent....the wallstent is a
dog...it is not deployed on a balloon, and impossible to
position accurately...I know I have used some
not for Namic.....BSX has an excellent collection of
They bought it because Schneider
have the US patent for rapid exchange catheters....the
most popular method of performing PTCA in
Europe.....the patent will be VERY useful....
Just weighing in. Here's some food for thought
about the Schneider thing and BSX.
exchange makes up a huge portion of both PTCA and Stenting
including US. It is one reason why ACS has grown so quick
in the stent business (that and a good stent and a
ton of "hate J&J sentinment") The Schneider piece
gives BSX rapid exchange NOW.
2. The balance of
Schneider stuff. In a prior life I was in this business.
Their product line wasn't bad....there sales force
sucked. This helps BSX fill in some weak spots.
The NAMIC element....my wife runs a lab...she wants
soup to nuts service and coverage, including these
kits. ACS hurts here. Many feel like she does, too.
Count on the bundling and packaging to pull through
some additional business HOSPITAL WIDE in all the
angio based suites.
4. Those who think stents
are going away or going extra cheap in the US anytime
soon are silly. It takes too much $$$ and time to get
through the FDA so the mom and pop euro knock offs won't
bother. They make enough in Europe. The US market will
stay consolidated in about five different stents.
History shows it takes #7 or 8 to a market to make the
stupid price war decision.
5. NIR is a very, very
good stent. If I'm AVE, I'm seriously looking at Bard
BSX has everything that a cath lab will
From Touhy-Borst connectors, guides, guidewires, to
IVUS, to Rotablator, to Balloons, to Stents, and to
This allows BSX to bundle
Compare this to the competition and BSX will stand
Not right away, but by 6/99.
sound like a whiny fourth grade Manufacturing Engineer
at AVE. Go home and take a nap.