Boston Scientific ( BSX - Analyst Report ) , in order to strengthen its interventional cardiology portfolio, has signed a definitive agreement to acquire Minnesota-based BridgePoint Medical. The transaction is expected to close in the fourth quarter of 2012. However, financial details of the deal were not disclosed.

On successful completion of the deal, Boston Scientific’s portfolio would include a catheter-based system developed by BridgePoint Medical to treat coronary chronic total occlusions (CTOs). The system has received both US Food and Drug Administration (‘FDA’) and CE Mark approvals.

CTO prevents blood circulation to critical areas of the heart. As such, the CTO devices enable treatment in these cases that otherwise would have required the patient to undergo invasive intervention, such as coronary artery bypass surgery.

During the last reported quarter, revenues from Interventional Cardiology (other than coronary stent system) increased 3% at constant currency to $209 million comprising US sales of $78 million and international sales of $131 million.

Following the CE Mark approval of the Emerge PTCA dilatation catheter in the EMEA region in April this year, the company launched the product. The company expects to unveil this product in the US market in the third quarter. Furthermore, it anticipates introducing additional new products in vascular access, balloon catheters and IVUS during 2012.

Boston Scientific diversified the portfolio of this business with the acquisitions of Atritech and Sadra Medical, both in 2011. The former brought in the Watchman Left Atrial Appendage Closure device which offers an alternative to anticoagulant drugs and is CE Mark approved. The company is working to get the device approved in the US, possibly in 2013.

On the other hand, with the acquisition of Sadra Medical, Boston Scientific is developing a fully repositionable and retrievable device, Lotus valve system, for transcatheter aortic valve replacementto treat patients with severe aortic stenosis. This business, apart from being immensely promising, is also highly competitive with players such as Medtronic ( MDT - Analyst Report ) and Edwards Lifesciences ( EW - Analyst Report ) competing to increase their respective market share in Europe.

We are impressed with Boston Scientific’s recent acquisitions, which reflect its focus on new therapies to drive top line. This strategy is significant given the poor performance of its core segments of stents and defibrillators.

We have a Neutral recommendation on Boston Scientific. The stock retains a Zacks #3 Rank (“Hold”) in the short term.