February 25, 2015
By Jessica Wilson, BioSpace.com Breaking News Staff
Boston Scientific Corp could soon complete the purchase of Endo International PLC’s American Medical Systems (AMS), a medical device company, for $2 billion, “according to people familiar with the matter, reported Reuters on Tuesday.
The companies could finalize the deal “within a matter of weeks,” the sources, who asked not to be named, told Reuters. They also cautioned that nothing is certain and the deal could still evaporate.
Reports that Endo was looking to divest AMS first appeared in late August 2014. The rumored price tag of $2 billion is significantly less than the $2.9 billion Endo paid for AMS in 2011.
One reason for the lower price tag could be the liability lawsuits filed against AMS by customers over its transvaginal mesh products. Endo paid $830 million in 2014 to settle approximately 20,000 liability lawsuits. “Endo admitted no guilt in settling the lawsuits, but the hit pushed the company into the red for the first quarter of 2014,” reported Mass Device in May 2014.
Boston Scientific, however, is also facing lawsuits from women regarding its transvaginal mesh devices. Earlier this month, representatives from Boston Scientific Corp joined representatives from C.R. Bard and Johnson & Johnson ’s Ethicon Inc. in the courtroom of U.S. District Judge Joseph Goodwin in Charleston, West Virginia to face plaintiffs’ lawyers.
So far, more than 70,000 transvaginal mesh lawsuits against seven companies have been consolidated before that same judge, with more expected.
Boston Scientific is among the three companies, along with Bard and Ethicon, facing the most cases. All three companies have been “hit with multimillion dollar verdicts for women who said the mesh caused painful infections, bleeding and other complications.” These verdicts have increased the pressure to settle, but thus far the companies have not done so.
While encouraging the companies to settle in order to avoid expensive and lengthy trials, Goodwin said, “I’m going to kick it into high gear and ask that you do the same,” according to Reuters. In addition, the judge praised AMS for deciding to settle its lawsuits.
If Boston Scientific does purchase AMS, it will be the company’s largest takeover since buying Guidant Corp for $27 billion in 2006.
BioSpace Temperature Poll
Analyst Mark Schoenebaum, a biotech and pharmaceuticals analyst and medical doctor for ISI Group Evercore, has been running a Best Hair in Biopharma contest for several months now. So far, the candidates are Bristol-Myers Squibb Company‘s John Elicker, Receptos’ Chief Executive Officer Faheem Hasnain, Celgene‘s Vice President of Investor Relations Patrick Flanigan and Acorda Therapeutics’ Ron Cohen.
We want to know what our BioSpace community thinks: Who do you believe actually has the Best Hair in BioPharma?
| Read at BioSpace.com |
