Guidant Corporation, part of
Boston Scientific
Boston Scientific Corporation ("BSC"), incorporated in Delaware, is a biomedical/biotechnology engineering firm and multinational manufacturer of medical devices used in interventional medical specialties, including interventional radiology, in ...
and
Abbott Labs
Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known d ...
, designs and manufactures
artificial cardiac pacemaker
An artificial cardiac pacemaker (or artificial pacemaker, so as not to be confused with the natural cardiac pacemaker) or pacemaker is a medical device that generates electrical impulses delivered by electrodes to the chambers of the heart ei ...
s,
implantable cardioverter-defibrillator
An implantable cardioverter-defibrillator (ICD) or automated implantable cardioverter defibrillator (AICD) is a device implantable inside the body, able to perform defibrillation, and depending on the type, cardioversion and pacing of the ...
s,
stent
In medicine, a stent is a metal or plastic tube inserted into the lumen of an anatomic vessel or duct to keep the passageway open, and stenting is the placement of a stent. A wide variety of stents are used for different purposes, from expandab ...
s, and other cardiovascular medical products. Their company headquarters is located in
Indianapolis
Indianapolis (), colloquially known as Indy, is the state capital and most populous city of the U.S. state of Indiana and the seat of Marion County. According to the U.S. Census Bureau, the consolidated population of Indianapolis and Marion ...
,
Indiana
Indiana () is a U.S. state in the Midwestern United States. It is the 38th-largest by area and the 17th-most populous of the 50 States. Its capital and largest city is Indianapolis. Indiana was admitted to the United States as the 19th s ...
. Their main competitors are
Medtronic
Medtronic plc is an American medical device company. The company's operational and executive headquarters are in Minneapolis, Minnesota, and its legal headquarters are in Ireland due to its acquisition of Irish-based Covidien in 2015. While it ...
,
St. Jude Medical, and
Johnson and Johnson
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company i ...
.
History
In February 1972,
Cardiac Pacemakers, Inc.
Cardiac Pacemakers, Inc.(CPI), doing business as Guidant Cardiac Rhythm Management, manufactured implantable cardiac rhythm management devices, such as pacemakers and defibrillators. It sold microprocessor-controlled insulin pumps and equipment to ...
(CPI) of St. Paul, Minnesota was formed. CPI was a highly successful start up venture, increasing sales from zero in 1972 to over $47 million and highly profitable when it was acquired by
Eli Lilly
Eli Lilly (July 8, 1838 – June 6, 1898) was an American soldier, pharmacist, chemist, and businessman who founded the Eli Lilly and Company pharmaceutical corporation. Lilly enlisted in the Union Army during the American Civil War and r ...
in 1978 for $127 million. In 1977 Eli Lilly & Co. buys IVAC of San Diego (a manufacturer of medical pumps and other hospital equipment) for $60.5 million. In 1980, Eli Lilly & Co. acquires
Physio-Control
Physio-Control Corporation was founded in 1955 by Dr. Karl William Edmark as a pioneering company in the field of portable defibrillation. Physio-Control manufactures emergency defibrillation and automated CPR equipment. The company was most re ...
of Redmond, WA. and Advanced Cardiovascular Systems of Santa Clara, CA
984
Year 984 ( CMLXXXIV) was a leap year starting on Tuesday (link will display the full calendar) of the Julian calendar.
Events
By place
Europe
* Spring – German boy-king Otto III (4-years old) is seized by the deposed Henry II ( ...
(balloon dilatation catheters and guidewires) along with Devices for Vascular Intervention(DVI) of Redwood City, CA
988
Year 988 ( CMLXXXVIII) was a leap year starting on Sunday (link will display the full calendar) of the Julian calendar.
Events
By place
Byzantine Empire
* Fall – Emperor Basil II, supported by a contingent of 6,000 Varangians ...
(athetectomy catheter). These companies formed the core product/therapy areas of the Medical Devices Division of Eli Lilly and Company.
In 1994, Lilly had a change in senior management and Randy Tobias, the new president & CEO, decided that Lilly would focus on its pharma and other related businesses. The Medical Devices Division was spun off and went public in late 1994 under the name of Guidant Corporation (NYSE and PCX: GDT). The new company focused on cardiac rhythm management (pacemakers and implantable defibrillators) and cardiac and vascular intervention products via coronary and peripheral stents, guidewires and balloon dilatation catheters. Less invasive heart surgery was another small business unit of Guidant.
In February 1999 the business acquired
Sulzer Medicas electrophysiology business for $810 million cash and in November of the same year, acquired
CardioThoracic Systems, Inc.
In July 2002 the company acquired
Cook Group Incorporated, and months later in December, Guidant acquired
Cardiac Intelligence Corporation.
In April 2003 the business acquired
SyneCor, LLC, developer of a fully bioabsorbable vascular stent. Months later, in June 2003 Guidant acquired
X Technologies, Inc. for $60 million.
In January 2004, the company acquired
AFx inc. AFX may stand for:
* AFX Windows Rootkit 2003, a user-mode Windows rootkit that hides files, processes and registry
* AFX News Limited, a London financial news agency
* Animation Framework eXtension, a model for representing 3D graphics content de ...
, a pioneer in the field of microwave surgical cardiac ablation.
Acquisition offer by Johnson & Johnson
Johnson & Johnson announced that it was acquiring Guidant on December 15, 2004, for $76 a share, at a cost of $25.4 billion. The deal was approved by Guidant stockholders on April 27, 2005. On May 25, Guidant reported 26 cases of implantable
defibrillator
Defibrillation is a treatment for life-threatening cardiac arrhythmias, specifically ventricular fibrillation (V-Fib) and non-perfusing ventricular tachycardia (V-Tach). A defibrillator delivers a dose of electric current (often called a ''coun ...
failure, including one death. The same day, the
New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid d ...
published an article accusing Guidant of waiting years before notifying physicians about the problems. On June 17, Guidant issued a safety advisory on seven models of defibrillator, followed a week later by advising doctors to discontinue use of four models. The scope of the problems steadily increased, and on July 18, 2005, Guidant issued a warning for nine different models of pacemakers from 1997 to 2000. The next day, Johnson & Johnson warned that the acquisition may be delayed due to these issues. On September 22, Guidant issued safety advisories and recalls for 170,000 of their pacemakers, 56% of their total pacemakers. On October 18, Johnson & Johnson gave an announcement that they were exploring alternatives to the acquisition, followed by a November 2 warning that they might pull out of the deal due to the regulatory issues and legal liabilities. On November 7, 2005, Guidant sued Johnson & Johnson to force them to complete the deal. On November 15, the two companies announced a renegotiated purchase price of $63 a share, or $21.5 billion, a 15% price reduction.
Acquisition offer by Boston Scientific
On December 5, 2005,
Boston Scientific
Boston Scientific Corporation ("BSC"), incorporated in Delaware, is a biomedical/biotechnology engineering firm and multinational manufacturer of medical devices used in interventional medical specialties, including interventional radiology, in ...
made a surprise unsolicited $24.6 billion bid to acquire Guidant, offering $72 per share of Guidant, $36 in cash and a fixed number of Boston Scientific shares valued at $36 a share. Guidant's stock price rose 10% on the news. The offer was not actually finalized until after due diligence had been completed on January 8, 2006.
Counter-offers
On January 11, 2006, Johnson & Johnson presented a counteroffer of $23.2 billion, still less than their original 2004 bid, which the Guidant board accepted. The next day, Boston Scientific increased their bid to $25 billion, followed the next day by Johnson & Johnson increasing their bid to $24.2 billion. It was not until January 17 that Boston Scientific produced a new offer of $27.2 billion ($80 per share), with the help of
Abbott Laboratories
Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known dr ...
. Abbott agreed to purchase $1.4 billion of Boston Scientific stock and pay $4.1 billion for Guidant's vascular intervention business upon completion of the merger. Without Abbott's financial assistance, it would have been unlikely that Boston Scientific could have produced the counteroffer.
On January 25, 2006, after Johnson & Johnson refused to raise their bid higher than $24.2 billion, Guidant declared Boston Scientific's offer "clearly superior" and accepted their bid. Guidant paid a $705 million
termination fee {{About, fees for breaking terms of agreements or long-term contracts, Interconnect fees in (telephone) networks, Termination rates
An early termination fee is a charge levied when a party wants to break the term of an agreement or long-term contra ...
to Johnson & Johnson.
On April 21, 2006, the deal with Boston Scientific was complete. This deal included Abbott Labs buying the vascular intervention business of Guidant for approximately $4.5 billion. ''
Fortune
Fortune may refer to:
General
* Fortuna or Fortune, the Roman goddess of luck
* Luck
* Wealth
* Fortune, a prediction made in fortune-telling
* Fortune, in a fortune cookie
Arts and entertainment Film and television
* ''The Fortune'' (1931 film) ...
'' magazine characterized the deal as the second worst deal ever, stating that the company paid too much for Guidant. On July 27, 2006, Boston Scientific posted a loss of $4.26 billion for the quarter.
NY Times article
/ref>
Locations
*Indianapolis
Indianapolis (), colloquially known as Indy, is the state capital and most populous city of the U.S. state of Indiana and the seat of Marion County. According to the U.S. Census Bureau, the consolidated population of Indianapolis and Marion ...
, Indiana
Indiana () is a U.S. state in the Midwestern United States. It is the 38th-largest by area and the 17th-most populous of the 50 States. Its capital and largest city is Indianapolis. Indiana was admitted to the United States as the 19th s ...
(world headquarters)
*Redmond, Washington
Redmond is a city in King County, Washington, United States, located east of Seattle. The population was 73,256 at the 2020 census, up from 54,144 in 2010.
Redmond is best known as the home of Microsoft and Nintendo of America.
With an an ...
(Cardiac Rhythm Management)
* Santa Clara, California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
(Vascular Intervention, Endovascular Solutions, Cardiac Surgery)
*Arden Hills
Arden Hills is a city in Ramsey County, Minnesota, United States. The population was 9,552 at the 2010 census. Bethel University and Seminary is located in the city of Arden Hills. Also, the campus of University of Northwestern – St. Paul st ...
, Minnesota
Minnesota () is a state in the upper midwestern region of the United States. It is the 12th largest U.S. state in area and the 22nd most populous, with over 5.75 million residents. Minnesota is home to western prairies, now given over to ...
(Cardiac Rhythm Management)
*Temecula
Temecula (; es, Temécula, ; Luiseño: ''Temeekunga'') is a city in southwestern Riverside County, California, United States. The city had a population of 110,003 as of the 2020 census and was incorporated on December 1, 1989. The city is a t ...
, California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
(Vascular Intervention)
*Clonmel
Clonmel () is the county town and largest settlement of County Tipperary, Republic of Ireland, Ireland. The town is noted in Irish history for its resistance to the Cromwellian conquest of Ireland, Cromwellian army which sacked the towns of Dro ...
, Ireland
Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...
(Manufacturing)
*Dorado
Dorado () is a constellation in the southern sky. It was named in the late 16th century and is now one of the 88 modern constellations. Its name refers to the dolphinfish (''Coryphaena hippurus''), which is known as ''dorado'' in Spanish, altho ...
, Puerto Rico
Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and Unincorporated ...
(Manufacturing)
*Galway
Galway ( ; ga, Gaillimh, ) is a City status in Ireland, city in the West Region, Ireland, West of Ireland, in the Provinces of Ireland, province of Connacht, which is the county town of County Galway. It lies on the River Corrib between Lo ...
, Ireland
Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...
(Manufacturing)
References
{{reflist
External links
Official site
Manufacturing companies based in Indianapolis
Eli Lilly and Company