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Standard & Poor's Ratings Services said today that Boston Scientific Corp.'s (NYSE:BSX - News; A-/Positive/A-2) plan to acquire implantable microelectronic medical device maker Advanced Bionics Corp. will not result in immediate changes to the company's ratings or outlook.


n keeping with Boston Scientific's strategy, this acquisition reinvests a portion of the substantial cash flow expected from the company's new drug-eluting stent in sophisticated, non-invasive medical technologies that diversify its portfolio and disease-state focus. While Advanced Bionics' sales are currently low, with about $82 million expected in 2004, Boston Scientific plans to leverage the acquired company's resources with its own R&D and sale force infrastructure to incrementally grow sales of existing products in the acquired portfolio, commercialize new products in its pipeline, and foster organic expansion of relatively immature markets. This could elevate Advanced Bionics' sales to $1 billion within six years. This is Boston Scientific's first sizable acquisition since 2001, and the company has the financial wherewithal to accommodate the transaction without straining its credit profile.
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