January 5, 2011 / 9:22 PM / 9 years ago

UPDATE 1-Boston Scientific buys Intelect Medical for $60mln

* Acquisition to expand deep brain stimulation franchise

* Deal to be accretive to earnings in 2014

* Shares rise 5 cents

NEW YORK, Jan 5 (Reuters) - Medical device maker Boston Scientific Corp (BSX.N) said on Wednesday it bought Intelect Medical for $60 million in a move aimed at expanding its future portfolio of deep brain stimulation products.

Boston Scientific, whose beaten down shares barely moved following the announcement, said it expects the deal to add to its earnings in 2014 but have no material impact until then.

Intelect, a privately-held, Boston-based company, is developing neuromodulation technologies for deep brain stimulation (DBS) therapy, which involves implantation of a lead into the brain and a pulse generator in the chest that sends electrical impulses to the brain.

It is believed that DBS therapy could help treat a host of diseases and conditions, such as Parkinson’s disease.

Boston Scientific said Intelect Medical’s technology could be combined with its own Vercise DBS System, which is designed to deliver electrical signals to specific areas within the brain. The company said the worldwide market for DBS systems could exceed $1.5 billion by 2020.

“Deep brain stimulation has enormous potential, and it is an important part of our neuromodulation business growth plans,” Chief Executive Ray Elliott said in a statement, adding that the company will continue to seek products in areas in which it already has a presence that can be sold by its existing sales force.

Boston Scientific shares closed up 5 cents at $7.53 on the New York Stock Exchange. (Reporting by Bill Berkrot; editing by Carol Bishopric)

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