UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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ITEM 8.01 OTHER EVENTS
On November 26, 2019, a wholly owned subsidiary of Boston Scientific Corporation (“Boston Scientific”) and the Ontario Municipal Employees Retirement System (“OMERS”), entered into a royalty purchase agreement (the “Agreement”), pursuant to which Boston Scientific’s subsidiary sold to OMERS 50% of the royalties payable in respect of worldwide net sales of Zytiga®, beginning with those royalties attributable to sales starting on October 1, 2019, through the expiration of the royalty term. The purchase price for such royalty interests was U.S. $256 million in cash.
Boston Scientific acquired the Zytiga® royalty interests as part of its acquisition of BTG plc (“BTG”), which closed on August 19, 2019. At the time of the closing of the BTG acquisition, Boston Scientific disclosed that it was initiating a process to explore the divestiture of the royalty stream associated with BTG’s Zytiga® licensing arrangements. Because BTG had previously agreed to pay 50% of the Zytiga® royalty stream (net of certain offsets) to a third party, this transaction results in there being no future cash benefit expected to be received by Boston Scientific or any of its subsidiaries in respect of Zytiga® royalties. The transaction is expected to have no impact on Boston Scientific’s income statement for 2019 and thereafter, and the cash proceeds from the transaction are expected to be used primarily to pay down debt. Additionally, the transaction does not impact Boston Scientific’s financial guidance for 2019 as the royalty business was deemed a passive business and accounted for as an asset on Boston Scientific’s balance sheet.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
Exhibit No. |
Description | |
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BOSTON SCIENTIFIC CORPORATION | ||||||
Date: November 26, 2019 | By: |
/s/ Vance R. Brown | ||||
Vance R. Brown Vice President and Chief Corporate Counsel | ||||||