Neovasc

Neovasc is a manufacturer of medical equipment for the treatment of the cardiovascular system. The company's main products are Neovasc Reducer (a refractory angina treatment device that entered the European market in 2015) and Tiara (transcatheter mitral valve prosthetics).

2016: Boston Scientific buys 15% in company for $75m

In early December 2016, medical technology manufacturer Boston Scientific announced an investment of $75 million in Neovasc. As part of the transaction, the buyer will receive a 15 percent stake in the company and its business for the production of devices for histological wiring of biological tissues.

Under the terms of the agreement, Boston Scientific acquires 11.8 million Neovasc shares at a price of 60 cents per joke, which amounts to approximately $7 million. To close the transaction (scheduled for the end of 2016), it will be necessary to obtain approvals from regulators and the Toronto Stock Exchange, on which Neovasc securities are traded.

Boston Scientific invests $75 million in medical equipment maker to combat Medtronic

In addition, Boston Scientific will pay $67.9 million for Neovasc-owned tissue wiring technologies and businesses. At the same time, Neovasc will retain access to these assets under license, which will allow the company to continue working with existing customers and promoting products.

Boston Scientific, a longtime client of Neovasc, has always brought the company a significant share of fabric processing revenue, says Neovasc CEO Alexei Marko. - Investments raised from one of the world's largest manufacturers of cardiovascular devices enable Neovasc to further develop our leading products - Reducer and Tiara - and strengthen our resolve to revolutionize the treatment of structural heart disease.

According to analyst Vijay Kumar of Evercore, the purchase of Neovasc will allow Boston Scientific to successfully compete with Medtronic and Edward Lifesciences in the transcatheter aortic valve prosthetic technology market. Boston Scientific plans to enter this market in the second half of 2017.^[1]

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