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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Boston Scientific Corporation | NYSE:BSX | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.31 | -0.43% | 72.19 | 72.79 | 71.735 | 72.34 | 8,718,138 | 00:54:58 |
By George Stahl
Boston Scientific agreed to pay Johnson & Johnson $600 million to settle a long-running lawsuit related to the 2006 acquisition of heart-device maker Guidant Corp. for $27 billion.
J&J had sought more than $7 billion in damages after accusing Guidant of breaching their merger agreement by going with the higher offer from Boston Scientific.
As a result of the settlement announced Tuesday, J&J has agreed to dismiss its lawsuit without acknowledgment of liability by Guidant. Boston Scientific also agreed not to bring patent infringement or other claims related to certain J&J stent products.
Boston Scientific said it would include a charge of $600 million with its fourth-quarter results. On Feb. 4, Boston Scientific reported fourth-quarter earnings of $87 million, or 6 cents a share, on revenue of $1.89 billion.
In 2006, Boston Scientific made a last-minute bid that snatched away Guidant from J&J.
J&J had worked 18 months to land Guidant, seeking an entree into the big market for devices that regulate errant heart rhythms. J&J had provided an opening for Boston Scientific when it lowered its original offer after Guidant ran into product-quality problems. But when its bid reached $24 billion, few expected upstart Boston Scientific to swoop in with a take-out offer.
While Boston Scientific may have out-maneuvered J&J in the takeover battle, it has struggled since amid a heavy debt load caused by the deal, increased competition in the heart market and the economic downturn last decade. The company's stock, which was in the mid-$20s in the months leading up to the Guidant deal, has only recently reached $15 after trading several years below it.
J&J, meanwhile, trades above $100 after being around $60 in early 2006.
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