Boston Scientific will sell its stakes in startup companies, including those in Israeli startups such as superDimension, MEL Medical Enterprises, MediGuide, E-Pill Pharma, Beta O2 Technologies, Brainsgate and VisionCare Ophthalmic Technologies, according to Globes, in order to focus on its core business.
The medical device giant has invested nearly $6 billion in new technologies over the past five years but is refocusing to address the heavy debt caused, in part, by its acquisition of cardiology equipment giant Guidant for $27.7 billion. According to IVC, the company has also invested in Israeli venture capital funds, including Ascend, Medica Venture Partner, and Vitalife Life Sciences Venture.
The news may be troubling to those startups and VCs involved as Boston Scientific is a strategic partner with a vast network of connections and years of experience. Other medical device companies may buy up the shares at bargain prices, which would do little to provide crucial capital needed for development. The news may actually drive down the value of the startups themselves.
Boston Scientific announced intentions to invest nearly $100 million in Israeli startups in 2002. Let’s hope its huge selloff won’t be damaging to the Israeli biomedical industry.
Filed under: Biotech, Medical Devices | Tagged: beta o2, boston scientific, brainsgate, e-pill, mediguide, mel medical, superdimension, visioncare | 2 Comments »
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