USA — Boston Scientific has entered into a definitive agreement to acquire Apollo Endosurgery in a deal valued at US$615 million to expand its portfolio of gastric devices.
Apollo Endosurgery makes devices used in surgeries to manage gastrointestinal complications and aid in weight loss for patients suffering from obesity.
The Apollo Endosurgery product portfolio includes devices used during endoluminal surgery (ELS) procedures to close gastrointestinal defects, manage gastrointestinal complications, and aid in weight loss for patients suffering from obesity.
ELS provides a less invasive alternative to open and laparoscopic surgery for patients with diseases in the gastrointestinal tract or morbid obesity while providing the potential for quicker recovery and minimizing the risks of surgical complications.
“Endoluminal surgery is an emerging field and a core focus for our Endoscopy business,” said Mike Jones, senior vice president and president of endoscopy at Boston Scientific.
Apollo Endosurgery is expected to generate net sales of approximately US$76 million in 2022 as a result of the expected growth in its endoscopic suturing system franchise, including its OverStitch Endoscopic Suturing System, OverStitch Sx Endoscopic Suturing System, and X-Tack Endoscopic HeliX Tacking System.
OverStitch is intended to provide physicians and patients with improved core gastrointestinal and bariatric therapy options by allowing physicians to suture with precision from a flexible endoscope.
In July 2022, Apollo Endosurgery received FDA de novo clearance for its Apollo ESG, Apollo ESG Sx, Apollo REVISE, and Apollo REVISE Sx Systems, the first devices authorized for endoscopic sleeve gastroplasty (ESG) and endoscopic bariatric revision procedures.
The company’s endobariatric portfolio also includes the Orbera Intragastric Balloon for endoscopic weight management.
The Orbera balloon, made of silicone is placed into the stomach endoscopically while deflated, then filled with saline until it is about the size of a grapefruit.
The balloon is only in the stomach for six months, but patients continue to receive weight-loss support from a team of specialists for a full year.
Reshape Medical purchased Apollo’s surgical product line, which included the Lap-Band adjustable gastric banding system, in 2018. In turn, Apollo purchased ReShape’s intragastric balloon line.
Apollo inherited both the Orbera balloon and the Lap-Band device through its US$110 million acquisition of Allergan’s obesity intervention division in 2013.
Boston Scientific expects to complete the transaction in the first half of 2023, subject to satisfaction of customary closing conditions.
The impact on Boston Scientific’s adjusted earnings per share is expected to be immaterial in 2023, and accretive thereafter.