Boston Scientific Considers Stock Sale of Endoscopy Business

Natick, MA-based Boston Scientific said it might sell off a minority stake in its endosurgery group.

The move is hoped to draw attention to the unit’s growth and help pay off debt while the medical device manufacturer’s stock struggles to recover from the recent $27 billion acquisition of Guidant.

According to the Associated Press, Boston Scientific said its board of directors gave management permission to explore an initial public offering (IPO) of a stake of anywhere from 18% to 25% of the endosurgery group. The review is expected to take six to 12 months, with any IPO occurring in late 2007 or early 2008.

After the announcement of a possible IPO on March 12, its shares fell 61 cents to close at $15.16 on the New York Stock Exchange, near the bottom end of the stock’s 52-week range of $14.43 to $23.96.

Boston Scientific would remain majority owner of the unit, which develops devices to treat a variety of digestive, urological and gynecological disorders as well as certain cancers.

The group is expected to generate $1.4 billion in revenue in 2007, nearly one-fifth of the revenue at a company best known for its heart stents and defibrillators. The unit has posted annual revenue growth of about 12% over the past eight years.