NATICK, Mass.,  Boston Scientific Corporation today announced the completion of its acquisition of Atritech, Inc. of Plymouth, Minnesota.  The completion of the transaction follows the signing of a definitive merger agreement announced on January 19, 2011.  

Atritech's WATCHMAN® Left Atrial Appendage Closure Technology gives Boston Scientific an innovative product designed for atrial fibrillation patients with high stroke risk.  Atrial fibrillation patients are prone to developing blood clots in the left atrial appendage that can dislodge and block circulation to the brain, resulting in a stroke.  The WATCHMAN device is designed to close the left atrial appendage, thereby preventing clots within the appendage from being dislodged into circulation.

Atritech has completed PROTECT-AF, an 800-patient randomized clinical trial of its WATCHMAN device that demonstrated a 38 percent relative risk reduction for stroke, cardiovascular death and systemic embolism compared to long-term warfarin therapy.  Atritech is currently enrolling patients in the PREVAIL study, a confirmatory study designed to gain U.S. Food and Drug Administration approval.  The WATCHMAN device is CE Marked and was commercialized outside the United States in 2009.

"The Atritech acquisition significantly strengthens our product offerings in the fast-growing areas of structural heart therapy and atrial fibrillation, which represent two of our Priority Growth Initiatives," said Ray Elliott, President and Chief Executive Officer of Boston Scientific.  "Left atrial appendage closure represents a significant growth opportunity for Boston Scientific, and Atritech's WATCHMAN® device is the first such product for atrial fibrillation patients at high risk for stroke."  

Under the acquisition agreement, Boston Scientific purchased all outstanding Atritech shares for a total of $100 million.  Additional payments of up to $275 million are contingent upon achievement of specified regulatory and revenue-based criteria through 2015.  The Company expects the transaction to be approximately one to two cents dilutive to earnings per share (EPS) on a GAAP basis in 2011, 2012 and 2013, and accretive thereafter; on an adjusted basis, the transaction is expected to be approximately one cent dilutive to EPS in 2011 and 2012, and accretive thereafter.  The difference between the estimated impact on GAAP and adjusted EPS relates to amortization expense on acquired intangible assets and the accrual of contingent consideration expense, which are excluded by the Company for purposes of measuring adjusted EPS.

In the U.S., the WATCHMAN® device is an investigational device, limited by applicable law to investigational use only and not available for sale.  

Source: Boston Scientific Corporation