CryoCor gains on deal with Boston Scientific

CryoCor Inc. shares jumped today after the company said it will collaborate with medical device maker Boston Scientific Corp. to develop products that treat irregular heartbeat using extreme cold.

The companies will develop products to treat atrial fibrillation, the most common type of irregular heartbeat. Natick, Mass.-based Boston Scientific agreed to buy $2.5 million in CryoCor stock in the deal, and could buy another $2.5 million based on development milestones.

CryoCor, based in San Diego, will also receive payments based on those milestones and future royalties.

"This agreement initiates a meaningful relationship between both entities, and increases the possibility for either a distribution agreement for a potential atrial fibrillation product or a more significant strategic relationship down the road," Roth Capital Partners analyst Matt Dolan wrote in a research note.

He rates the shares "Hold" and has $4 price target. The stock closed at $4.81 Thursday.

CryoCor stock rose $1.32, or 27 percent, to $6.13 in heavy morning trading. Shares have ranged between $1.25 and $7.35 in the last year.

Boston Scientific shares fell 6 cents to $15.44. (AP)