Status Report: Datascope Corp. - Getinge AB

Sep.29.08 | About: Datascope Corp. (DSCP)

The Datascope Corp. (DSCP) - Getinge AB combination may present some fairly complex issues in the area of vascular/cardiac devices as a result of Getinge acquiring Boston Scientific's (NYSE:BSX) cardiac surgery and vascular division last year.

At present, the devices offered appear to be largely vertical in their surgical applications, but this has often been somewhat difficult for regulators to examine within the medical device/equipment segment. In a cash tender offer time frame, this type of complexity is naturally accentuated with respect to regulatory reviews.

At this point in the research, no single direct overlap has been identified in the vascular device niche. This must be viewed as a major positive as current regulators (particularly in the U.S.) have shown little interest in transactions lacking horizontal overlaps in recent years.

On the negative side, market share data for both DSCP's and Getinge's specific products does not appear to exist in any recent or reliable form. Again, in the short transaction time frame anticipated, this sort of information void can often prove problematic.

It is perfectly clear that one of DSCP's primary competitors within the vascular surgery device market was Boston Scientific before Getinge acquired the relevant product division from Boston. Therefore, DSCP and Getinge must be considered competitors at least from a broad market perspective. This fact, combined with the lack of available detailed market data strongly suggests that this transaction is a candidate for and HSR re-filing and, perhaps, an informational second request.

Additional research and analysis will be posted shortly.

Disclosure: We have no positions of any kind, in any security. We are a completely neutral source of research and analysis.