Boston Scientific won't spin off unit

Boston Scientific Corp. said yesterday it would drop a proposed spinoff of its $1.4 billion surgical devices unit and cut jobs and costs in a plan to reverse a slide in the share price.

The endosurgery group, which earns as much as a fifth of the company's sales, will remain wholly owned by Boston Scientific. The firm said in a statement that a spinoff would have reduced shareholder value.

The Natick device maker said it will disclose a restructuring plan and cuts next quarter. Boston Scientific has been hurt by falling sales of implantable defibrillators, and orders for heart stents plummeted after they were linked to higher risks of potentially fatal blood clots.

"It's too early to speculate about any of the details of the plan," spokesman Paul Donovan said. "This is a top-to-bottom review of the whole company."

Boston Scientific projects one-fifth to one-sixth of its sales, or $1.4 billion, this year from the endosurgery division. The device maker paid $27.5 billion for Guidant Corp. last year. Since then, Boston Scientific shares have lost more than a third of their value.

"Our decision to retain the endosurgery group is the first in a series of steps we plan to take to advance our strategy of restoring growth, increasing shareholder value and continuing to build a broad, diversified company," chief executive Jim Tobin said in the statement.