Boston Scientific and Aspect Medical Form Brain Monitoring Alliance

Aspect Medical Systems Inc. (Newton, MA) and Boston Scientific Corp. (Natick, MA) have announced the formation of a strategic alliance to advance the development of brain monitoring technology for diagnosing and treating depression, Alzheimer’s disease, and other neurological disorders. Under the terms of the agreement, Boston Scientific will provide Aspect Medical with $25 million to fund the research and development activities.

Aspect Medical is a market leader in brain monitoring technology. The company reports that its Bispectral Index, or BIS, technology was “the first clinically proven and commercially available direct measure of the effects of anesthetics and sedatives on the brain.” BIS, which enables medical professionals to reliably gauge the precise amount of drug required by each patient, is installed in approximately 38% of U.S. operating rooms and is available in 160 countries around the world. Aspect also licenses the technology to seven manufacturers of patient-monitoring systems.

Aspect Medical CEO Chamoun: A faster pace.

The BIS device is a type of electroencephalograph, or EEG. It includes a disposable strip that adheres to the patient’s forehead and contains electrodes for transmitting brain-wave information to an external monitor. According to Aspect, use of the device in antidepressant therapy provides an early indication of whether a particular drug is working or whether the dosage should be increased or the patient switched to another medication. Since it takes up to four weeks to see clinical signs of mood improvement, BIS technology can often save the patient the time and expense of remaining on a drug or dosage that is likely ineffective.

Aspect president and CEO Nassib Chamoun said the alliance “represents an exciting opportunity to accelerate the pace of Aspect’s neuroscience research program . . . and will allow us to actively pursue product development for depression and Alzheimer’s disease with the goal of introducing new products that benefit patients and the healthcare system within the next three to five years. We hope to introduce new tools that can help medical professionals guide therapy management for patients throughout the course of treatment.”

Boston Scientific’s Best: Practical tools.

Larry Best, Boston Scientific CFO and executive vice president for finance and administration, added, “Aspect has demonstrated a remarkable ability to analyze complex brain signals and use this information to develop valuable and practical clinical tools. We look forward to working together with the mutual goal of introducing innovative products that address this sizeable clinical need.”

In a joint press release, the companies estimated that 18.8 million Americans suffer from depression, while 4 million have Alzheimer’s disease.

The alliance stipulates that Aspect Medical and Boston Scientific will share equally in the profits from products developed to treat and manage depression and other neurological disorders, but Aspect will retain all commercial rights for products developed in this area. Aspect is also free to pursue and continue collaborative efforts with other third parties in the development of customized neurological assessment solutions.

Boston Scientific currently owns approximately 27.4% of Aspect Medical, and may increase its equity position to 29.5%. Aspect Medical, with 208 employees, generated 2004 revenues of $55.6 million, a 26% increase over 2003 revenues of $44.1 million. Boston Scientific has 17,500 employees. The company’s 2004 revenues of $5.6 billion represent an increase of more than 60% over 2003 revenues of $3.5 billion.

© 2005 Canon Communications LLC

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