Covington Associates Advises GRAFTcath in Sale of Minority Interest to Boston Scientific
Boston, MA — May 12, 2006 — Covington Associates LLC announced today that it acted as the exclusive sell-side advisor to GRAFTcath, Inc. (“GRAFTcath”) in its sale of a minority interest of the company to Boston Scientific Corporation (NYSE: BSX), one of the world’s largest medical device companies. The terms of the transaction were not disclosed.
GRAFTcath, based in Eden Prairie, MN was formed to develop and market innovative vascular access products for patients with end-stage renal disease (ESRD). Patients with ESRD are in kidney failure and require routine dialysis to remove blood borne toxins from the bloodstream. Dialysis requires routine access to the patient’s bloodstream, and current methods employed to access the bloodstream are costly, often malfunction and have high rates of infection. The GRAFTcath Vascular Access System (GVAS) is a hybrid device utilizing known technology and preserving the best features of those already on the market while reducing cost and infection.
Throughout its history, Boston Scientific has advanced the practice of less-invasive medicine by providing a broad and deep portfolio of innovative products, technologies and services across a wide range of medical specialties. These less-invasive medical technologies provide alternatives to major surgery and other medical procedures that are typically traumatic to the body. In less-invasive procedures, devices are usually inserted into the body through natural openings or small incisions and can be guided to most areas of the anatomy to diagnose and treat a wide range of medical problems. The GRAFTcath device is a natural fit with this philosophy, and Boston Scientific has invested in a minority share of the company in order to see the GVAS through clinical trials and ultimately into the marketplace as a viable alternative to other devices currently on the market.
Ben Dunn, a Managing Director at Covington Associates and lead advisor to GRAFTcath on the transaction, was quoted as saying “The relationship with Boston Scientific provides GRAFTcath with additional growth capital and a world class partner with which to bring its products to market.”
About Covington Associates LLC
Covington Associates is a specialty investment banking firm founded in 1991 serving business service, consumer, industrial, healthcare and technology companies throughout the country. Focused on mergers and acquisitions, debt and equity capital raising, debt and equity restructuring, and strategic advisory assignments for middle market companies, Covington Associates has completed transactions ranging in value from $10 million to over $1 billion for both private and publicly traded companies. To learn more about Covington Associates, visit www.covingtonassociates.com.