Boston Scientific to sell neurovascular unit to Stryker

Boston Scientific has entered into an agreement which will see fellow medical device firm Stryker take over its neurovascular business.

The two companies have agreed a purchase price of $1.5 billion (935.1 million pounds) for the business unit, which generated $348 million in revenues in 2009 and employs around 1,150 members of staff.

Under the terms of the contract, Boston Scientific will provide transitional services to Stryker for 24 months after the deal is closed, allowing the latter company to take over manufacturing operations smoothly.

This transaction allows Stryker to gain control of a leading developer of medical technology used to treat cerebrovascular disease, such as the Target detachable coils range.

Ray Elliott, president and chief executive officer of Boston Scientific, said the move is consistent with an "overall strategic plan that will refocus our portfolio to, amongst other criteria, leverage existing sales forces with least invasive … medical devices that reduce or eliminate refractory drug regimens".

This comes after Boston Scientific completed a takeover of the asthma treatment specialist Asthmatx for $193.5 million last week.