Boston Scientific has agreed to acquire a 15 percent equity stake in Neovasc, as well as the company’s advanced biological tissue business for $75 million in cash.
Neovasc’s tissue business makes elements used in Boston Scientific’s Lotus valve system and other transcatheter heart valves.
Boston Scientific said the tissue business will be part of its structural heart division and be used to manufacture the Lotus valve and other heart valves in the future.
The deal is expected to close by the end of the year and is subject to customary closing conditions. Boston Scientific added that the acquisition will not change its earnings per share this year or next year.
On May 19, a jury awarded CardiAQ $70 million in a patent infringement lawsuit against Neovasc. CardiAQ is a subsidiary of Medtronic.
Neovasc's stock price fell from $1.84 per share on May 19 to $0.46 per share on May 20. Neovasc's stock price increased more than 50 percent to $0.78 per share within a few hours of the Boston Scientific deal announcement on Dec. 1.
Executive Editor
Tim Casey joined TriMed Media Group in 2015 as Executive Editor. For the previous four years, he worked as an editor and writer for HMP Communications, primarily focused on covering managed care issues and reporting from medical and health care conferences. He was also a staff reporter at the Sacramento Bee for more than four years covering professional, college and high school sports. He earned his undergraduate degree in psychology from the University of Notre Dame and his MBA degree from Georgetown University.