Boston Scientific VP: I've met 3-4 Israeli companies

Michael Phalen: We have the means to make acquisitions, and that's our challenge.

"Boston Scientific today has the means to make acquisitions, and that is our challenge: how to make acquisitions that will strengthen our growth and prevent competition against us in future. Just this week, we met with 3-4 Israeli companies," said Boston Scientific Inc. (NYSE: BSX) SVP and president of the Endoscopy Division Michael Phalen at the Ernst & Young and "Globes" Israel Journey 2010 Conference on the high tech, biotech, and venture capital industries today.

As for the kinds of companies that Boston Scientific is seeking, Phalen said, "Our vision has been more or less fixed for decades: to bring to market less invasive products. This concept will continue to direct us. The main change in our business is that more rapid growth will in future come from developing countries, in contrast to the Western World."

Phalen said that when Boston Scientific makes an acquisition, it is mainly interested in the following factors: a product that can drive growth, a strategic congruence between the two companies' products, an understanding of the product's operating mechanism, excellent results on effectiveness, and expectations of a good acceptance by the market. We will want to see clinical research on effectiveness, as well as insurance indemnification.

He said, "We invest in products that are better than those currently on the market, which will enable us to win market share. We probably won't invest in a field that we are unfamiliar with, and we'll try to invest in fields in which we already have sales teams."

Phalen added that, it was also important for Boston Scientific to know the status of a company's intellectual property. This means not just strong patents, but also congruence with Boston Scientific's products portfolio. "Does your intellectual property portfolio enable us to strengthen our position in a particular field against the competition? Could hit even let us attack the competitors?"

"Globes": You recently sold your start-up investment business. Is there a chance that you'll nevertheless again invest there?

Phalen: "Not necessarily. It's not certain that that activity suits us at this time."

Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2010

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