Boston Scientific Corporation (NYSE: BSX) today announced it has entered into a definitive agreement to acquire Relievant Medsystems, Inc., a privately held medical technology company.
| Acquisition intended to expand neuromodulation portfolio to provide more treatment options for people living with chronic low back pain MARLBOROUGH, Mass., Sept. 19, 2023 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX) today announced it has entered into a definitive agreement to acquire Relievant Medsystems, Inc., a privately held medical technology company that has developed and commercialized the Intracept® Intraosseous Nerve Ablation System to treat vertebrogenic pain, a form of chronic low back pain. The transaction includes an upfront cash payment of $850 million and undisclosed additional contingent payments based on sales performance over the next three years.
As the only U.S. Food and Drug Administration-cleared system for vertebrogenic pain, the Intracept system is a minimally invasive, implant-free outpatient procedure. The therapy uses targeted radiofrequency energy to stop the basivertebral nerve from transmitting pain signals to the brain and is designed to improve function and provide long-term relief. In the U.S., there is an estimated population of approximately 5.3 million people living with vertebrogenic pain.1 ″We anticipate this novel, clinically-backed technology can support our category leadership strategy while expanding access to care for individuals who need personalized treatment,″ said Jim Cassidy, president, Neuromodulation, Boston Scientific. ″Upon close, we look forward to working with the Relievant team to explore opportunities to bring this high-growth therapy to a wider population of people living with chronic low back pain.″ Boston Scientific expects to close the transaction in the first half of 2024, subject to satisfaction of customary closing conditions. Relievant is expected to generate sales in excess of $70 million in 2023 and to deliver year-over-year growth in excess of 50% in 2024. On an adjusted basis, the transaction is expected to be immaterial to adjusted earnings per share (EPS) in 2024, slightly accretive in 2025, and increasingly accretive thereafter. On a GAAP basis, the transaction is expected to be more dilutive due to amortization expense and acquisition-related charges. “Today is an exciting step forward to shaping the future of chronic low back pain with Boston Scientific as a leader in the interventional chronic pain space,″ said Tyler Binney, president and CEO of Relievant. ″This is a testament to the exceptionally talented Relievant team and the innovative engine behind the Intracept system. Together with Boston Scientific, we can accelerate our journey to provide life-changing relief to patients by transforming the diagnosis and treatment of vertebrogenic pain.″ About Boston Scientific Cautionary Statement Regarding Forward-Looking Statements Factors that may cause such differences include, among other things: future economic, political, competitive, reimbursement and regulatory conditions; manufacturing, distribution and supply chain disruptions and cost increases; disruptions caused by cybersecurity events; disruptions caused by extreme weather or other climate change-related events; labor shortages and increases in labor costs; new product introductions; expected procedural volumes; demographic trends; the closing and integration of acquisitions; intellectual property rights; litigation; financial market conditions; the execution and effect of our business strategy, including cost savings and growth initiatives; future business decisions made by us and our competitors; the conditions to the completion of the proposed transaction, including the receipt of any required regulatory approvals and clearances, may not be satisfied; and closing of the proposed transaction may not occur or may be delayed. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A – Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), which we may update in Part II, Item 1A – Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. This cautionary statement is applicable to all forward-looking statements contained in this press release. CONTACTS: Lauren Tengler 1 Hoy D, March L, Brooks P, et al. The global burden of low back pain; estimates from the Global Burden of Disease 2010 study. Annals of the Rheumatic Diseases 2014;73:968-974. https://ard.bmj.com/content/73/6/968;The global point prevalence of LBP was 9.4% (95% CI 9.0 to 9.8), (333M U.S. pop * 9.4% = 31M); Lorio et al. International Journal of Spine Surgery December 2022, 16 (6) 1084-1094; DOI: https://doi.org/10.14444/8362;http://www.ijssurgery.com/content/16/6/1084; estimated that 15% of CLBP patients suffer from primary vertebrogenic pain.
SOURCE Boston Scientific Corporation | ||
Company Codes: NYSE:BSX |
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