In its continuing efforts to reduce debt and more closely target its core businesses, Boston Scientific (Natick, Massachusetts) last week said it has added its cardiac and vascular surgery units to the list of businesses it wishes to sell as part of its plan to “review its portfolio of assets and divest those considered non-strategic, and to strengthen its operating and financial performance.”

“As part of an ongoing review of our assets, we have initiated a process to explore the sale of our Cardiac Surgery and Vascular Surgery businesses,” said Paul LaViolette, COO of Boston Scientific in a prepared statement. “If finalized, this sale will support our efforts to focus resources on our core businesses and improve our operating and financial performance. These are strong businesses, and we believe the combined portfolio has great potential for success with the focused attention and resources of external ownership. We are in discussions with several potential buyers, and we expect the process to take a number of months.”

The company adds these units to its recently disclosed plans to explore the sale of its fluid management business (Medical Device Daily, July 26, 2007) coupled with its recent disclosure that it was selling the auditory assets of Advanced Bionics (Valencia, California) while retaining the pain management assets of that company after a protracted legal struggle with that company’s management (MDD, Aug. 13, 2007).

The company decided earlier this month against selling a minority stake (up to 25%) in its Endosurgery business that could have generated close to $1 billion, prompting several creditors to lower the company’s debt ratings to junk-bond levels (MDD Aug. 6, 2007).

LaViolette said his company believes these latest decisions, coupled with its expected restructuring announcement for next quarter will help to restore the company’s financial house which is still struggling with close to $9 billion in debt left over from its $27.2 billion acquisition of Guidant (Indianapolis) last year. It has since had weaker sales in its coronary stent and defibrillator businesses, its two largest units

“This is another step in the progress we are making on our plan to divest non-strategic assets, monetize our investment portfolio and bring our expenses and head count in line with our revenues,” said LaViolette. “We have now identified three non-strategic businesses to divest, and we are in discussions with potential buyers for all three. In recent months we have retained our Endosurgery group, entered into an agreement to assume sole management and control of our pain management business from Advanced Bionics and sell the Advanced Bionics auditory business, monetized parts of our portfolio, and begun developing an expense and head count reduction plan, which we plan to announce next quarter. In addition, we continue to focus on the recovery of the drug-eluting stent and cardiac rhythm management markets. Together, these measures should combine to help us achieve our overall goals of restoring profitable growth, increasing shareholder value, and continuing to build and strengthen Boston Scientific.”

Boston Scientific acquired the Cardiac Surgery business in April 2006 as part of the Guidant transaction. Headquartered in San Jose with a manufacturing facility in Dorado, Puerto Rico, the Cardiac Surgery business is a developer of medical technologies designed to provide less-invasive therapies in cardiac surgery, including beating heart bypass surgery systems, endoscopic vessel harvesting for coronary bypass surgery, and microwave surgical ablation. The business employs about 450 people and had 2006 revenues of $189 million.

Boston Scientific established its Vascular Surgery business with the acquisition of Meadox Medicals in 1995. The Vascular Surgery business develops synthetic grafts and patches for repair of abdominal aortic aneurysms and peripheral vascular anatomy. The business had 2006 revenues of $86 million and has about 250 employees, primarily located at its manufacturing site in Wayne, New Jersey.

Larry Biegelsen, med-tech analyst for Wachovia Capital Markets, wrote in a research note that if the company sells its Cardiac Surgery, Vascular Surgery, and Fluid Management businesses — which are expected to have $350 million-$400 million in sales in 2007 — the company could reap pretax proceeds of between $500 million and $600 million.

In other dealmaking news:

• Vital Signs (Totowa, New Jersey) reported the acquisition of Enginivity (Lexington, Massachusetts) and its enFlow IV fluid and blood warmer technology for $5.9 million.

The enFlow device is a fluid warming system that can be used to deliver flows from KVO to 200 ml/min, using advanced dry heat technology. The enFlow system brings the warming element closer to the patient which reduces heat loss. Maintaining normal body temperature during surgery is an important factor in reducing post-operative infections.

Terry Wall, president/CEO of Vital Signs, said, “The enFlow warmer is an excellent strategic fit for us as it allows us to leverage our sales force’s strength in anesthesia single-use product sales. The addition of the warmer and associated single-patient use cartridges allows us to expand our patient temperature management line and gain access to a $40-45 million domestic market. We plan to introduce enFlow in November.’’

The Enginivity products have received FDA clearance and CE-mark approval.

Vital Signs and its subsidiaries primarily make single-use products for the anesthesia, respiratory/critical care, interventional cardiology/radiology and sleep/ventilation markets.

• Concentra Health Services (Addison, Texas) recently reported that it has acquired Business Health Services (BHS), which includes five occupational healthcare centers in the Detroit and Ann Arbor, Michigan, markets.

Concentra said that these acquisitions expand its footprint to 23 centers around Michigan.

In addition to the five healthcare centers, BHS also operated three on-site medical facilities providing “episodic” care, wellness programs, and health fairs for local employers.

Milt DuPuy, MD, and Joe Hymes, executive director of BHS, have joined the company as the Detroit medical director and Michigan director of operations, respectively.

Concentra is a healthcare company that provides a range of services that provide quality patient care for work-related injuries. The company operates 320 occupational medical centers in 40 states and also provides urgent care services.