Bos Sci splashes into aortic valve market with $225M purchase

Kaitlyn Dmyterko | | Health Exec | Digital Transformation
Lotus aortic valve system
Image source: Sadra Medical
Boston Scientific is set to make headway in the aortic valve market by entering into a definitive agreement to purchase Sadra Medical for $225 million.

Under the agreement, Natick, Mass.-based Boston Scientific will pay the $225 million up front, in addition to payments of up to $225 million in milestone payments through 2016.

Currently, the global aortic valve replacement market is estimated to be $400 million and is expected to grow to $2 billion by 2016. The Los Gatos, Calif.-based Sadra develops the Lotus Valve System, which is used during percutaneous aortic valve replacement and consists of a stent-mounted valve prosthesis and a catheter delivery system to place the valve in patients with severe aortic stenosis.

Boston Scientific has been an investor in Sadra since 2006 and already owns 14 percent of the company. Under the agreement, the company will pay Sadra $193 million in addition to milestone payments. The transaction is expected to be one to two cents dilutive to GAAP and adjusted earnings per share in 2011, 2012 and 2013.

The company said that it expects the transaction to close in the fourth quarter of 2010 or first quarter of 2011.

Kaitlyn Dmyterko

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