Boston Scientific and Cardiovascular Imaging Systems Face FTC Roadblock to Merger

Strategic Insights -

Boston Scientific Corporation, a worldwide developer, manufacturer, and marketer of medical devices, and Cardiovascular Imaging Systems, Inc., a developer, manufacturer, and marketer of intravascular ultrasound imaging catheters and systems, recently announced a merger that would enable them to accelerate the development of new, improved, and lower-cost ultrasound imaging devices. However, the Federal Trade Commission (FTC) has decided to intervene in this case, seeking a preliminary injunction in Federal District Court to block the merger. The consummation of the merger will be delayed pending the FTC's effort to obtain an injunction.

Key Takeaways:

  • The FTC will seek a preliminary injunction in Federal District Court to block the merger between Boston Scientific and Cardiovascular Imaging Systems.
  • The merger aims to accelerate the development of new, improved, and lower-cost ultrasound imaging devices.
  • Boston Scientific and Cardiovascular Imaging Systems firmly believe the merger is procompetitive and in the best interests of patient care.
  • The companies claim that the merger will enable them to meet the needs of their customers, the physicians who use their products, and the needs of their patients.
  • The companies will vigorously oppose the FTC's effort to block the merger.
  • The combination of the two companies is needed to move intravascular ultrasound technology forward, as it has languished due to inadequate resources.
  • The FTC's actions may harm, not promote, patient health.

Statistics:

  • The Federal Trade Commission will seek a preliminary injunction in Federal District Court.
  • The merger between Boston Scientific and Cardiovascular Imaging Systems aims to accelerate the development of new, improved, and lower-cost ultrasound imaging devices.
  • Boston Scientific is a worldwide developer, manufacturer, and marketer of medical devices used in various interventional medical specialties.
  • Cardiovascular Imaging Systems develops, manufactures, and markets intravascular ultrasound imaging catheters and systems.

Sources:

  • Boston Scientific Corporation (NYSE: BSX)
  • Cardiovascular Imaging Systems, Inc. (Nasdaq: CVIS)
  • Larry Best of Boston Scientific, 617-972-4450 (Contact)