Boston Scientific to buy Cameron Health for $150 million

NATICK, Mass. – Fri Mar 8, 2012: Boston Scientific Corp said it agreed to acquire Cameron Health Inc. for $150 million in cash and additional payments of up to $1.20 billion if the privately held company’s device achieves certain regulatory and sales milestones.

Cameron Health is currently developing a defibrillator, known as S-ICD that can be implanted beneath the skin, unlike conventional defibrillators, which require thin, insulated wires to pass through the venous system and into the heart.

Boston Scientific will pay Cameron an additional $150 million after receiving U.S. regulatory approval for its device.

S-ICD has already received a CE mark in Europe and has been commercially available in major European countries since 2009.

Last year, Cameron Health filed a marketing application in the United States and Boston Scientific expects U.S. regulatory approval for the device in the first half of 2013.

Following the U.S. Food and Drug Administration’s approval, Cameron Health will be eligible to receive an additional $1.05 billion upon achievement of certain revenue-based milestones over six years.

Boston Scientific expects the deal to hurt 2012 adjusted earnings by 1 cent.

Shares of Boston Scientific, which expects to close the deal in the second or third quarter of this year, closed at $5.93 on Thursday on the New York Stock Exchange.