Boston Scientific to Divest Some Assets
The Federal Trade Commission (FTC) says Boston Scientific has agreed to divest certain assets to Varian Medical Systems to resolve FTC charges that the company’s proposed $4.2 billion acquisition of BTG would violate antitrust law. BTG is a medical equipment and pharmaceutical supplier.
FTC says that as originally structured, acquisition of BTG would harm consumers in the U.S. market for drug eluding beads (DEBs), used by interventional radiologists in combination with chemotherapy to treat certain liver cancers in a process known as transarterial chemoembolization. The agency complaint said Boston and BTG are the two largest suppliers of DEBs in the U.S.
The complaint said that new competition in this market is unlikely to occur in a timely manner to deter the anticompetitive effects of the proposed acquisition due to the length of time required for product development, FDA approval, and market adoption.
Under a proposed consent agreement with the FTC, within 10 days of closing of the BTG acquisition, Boston is required to divest to Varian its DEB business and its bland bead product line. FTC says bland beads are used in another type of procedure to block the flow of blood to a liver tumor.