Lilly Offers Up A Mixed Bag
Eli Lilly will try to cash in on its medical-devices businesses. Lilly announced on June 20 it will spin off the group into a new $800 million company known as Guidant. The odd name, derived from "guide," is meant to connote industry leadership. But the five companies to be sold are a mixed bag, says Piper Jaffray analyst Edward Mutsch. The strong players: Advanced Cardiovascular Systems, which makes angioplasty balloons, and Devices for Vascular Intervention, a maker of specialized catheters. The weak siblings: Cardiac Pacemakers and startup Heart Rhythm Technologies.