UPDATED July 2, 2019, with financial details, comment from Varian.
Looking to mollify anti-trust regulators about its pending $4 billion merger with BTG (LON:BTG), Boston Scientific (NYSE:BSX) said today that it agreed to deal its microsphere assets to Varian Medical (NYSE:VAR) for $90 million.
The deal for the drug-eluting and “bland” embolic microsphere business includes Marlborough, Mass.-based Boston Scientific’s Oncozene, Embozene and Embozone Tandem products, which put up sales of $21.2 million last year. The sale is slated to close after Boston and BTG conclude their merger in August.
Regulators in Germany cleared the BTG-Boston tie-up and Taiwan’s Fair Trade Commission closed its look at the deal, Boston and BTG said.
“This acquisition from Boston Scientific will strengthen Varian’s growing position in the high-value interventional oncology segment and is consistent with our long-term strategy to become a global leader in multidisciplinary, integrated cancer solutions,” Varian president & CEO Dow Wilson said in prepared remarks. “We look forward to completing this acquisition and are excited to add these drug-loadable microsphere and bland embolic bead products to our portfolio to provide our clinical partners with expanded advanced treatment options.”
Varian said the microsphere buyout, which does not include any Boston Scientific operations, is not expected to affect its fiscal year 2019 results but to add to both reported earnings and adjusted earnings in fiscal 2020.
“While Varian implements a plan to manufacture and distribute these products, it will work with Boston Scientific under transition services agreements to ensure uninterrupted delivery to customers,” the company said.
BTG’s shareholders in March OK’d the transaction, which calls for Boston Scientific to put up £8.40 per share or about $4.24 billion (£3.3 billion). Also in March, Boston Scientific closed a $4.3 billion debt round it plans use to defray the cost of buying BTG.
BTG’s largest division makes devices for oncology and vascular conditions; the company also makes overdose and antivenin drugs for snakebite.