USA — Boston Scientific has successfully completed the acquisition of Apollo Endosurgery, which was originally announced back in November of last year.
The enterprise value of the acquisition was estimated to be approximately US$615 million.
Apollo Endosurgery boasts a diversified product portfolio that includes cutting-edge devices utilized during endoluminal surgery (ELS) procedures.
The primary objective of ELS procedures is to close gastrointestinal defects, manage gastrointestinal complications, and assist with weight loss.
ELS procedures are less invasive compared to open and laparoscopic surgery, providing a faster recovery time while minimizing the risks of surgical complications.
Apollo Endosurgery specializes in developing gastrointestinal medical devices that facilitate less invasive treatments, which will prove to be a valuable addition to Boston Scientific’s existing portfolio.
The acquisition will enable Boston Scientific to enter the endobariatric market, which covers bariatric weight-loss procedures, as outlined in a press release from the company.
The deal will also expand Boston Scientific’s scope in technology for the closure and suturing of incisions.
Boston Scientific anticipates the transaction’s impact on adjusted earnings per share to be immaterial in 2023, with accretive effects projected for future periods.
Michael Jones, senior vice president, and president of endoscopy at Boston Scientific, highlighted the significance of the acquisition in a press release announcing the deal.
He remarked that the completion of the acquisition marks an exciting step forward in Boston Scientific’s ability to provide its customers and their patients with a comprehensive range of endoluminal surgery and endobariatric solutions.
He also expressed his eagerness to welcome new talent to Boston Scientific’s Endoscopy team, emphasizing that it will further strengthen the company’s ability to innovate for physicians and improve patient care.
Despite Boston Scientific’s revenue nearing US$13 billion in 2022, up from US$11.9 billion the previous year, its profits decreased by 33% over that same period.
To maintain its position in the medical device industry, Boston Scientific announced or closed on five acquisitions in 2022, with nine in total during 2021 and 2022.
Significance of the acquisition
endoscopic sleeve gastroplasty, is growing rapidly, with an estimated compound annual growth rate of 12% from 2020 to 2027, according to a report by Grand View Research.
The acquisition of Apollo Endosurgery positions Boston Scientific to capitalize on this growing market, by expanding its portfolio of endoluminal surgery and endobariatric solutions.
Furthermore, the acquisition will enable Boston Scientific to provide more comprehensive solutions to physicians and patients.
The integration of Apollo Endosurgery’s product portfolio with Boston Scientific’s existing capabilities in endoscopic suturing and closure technology will enable the development of innovative, minimally invasive solutions for a range of gastrointestinal conditions, beyond just obesity.
Boston Scientific’s acquisition of Apollo Endosurgery signifies a significant shift in the obesity treatment market.
The prevalence of obesity continues to increase at an alarming rate, with more than 1.9 billion adults worldwide classified as overweight, and over 650 million of them categorized as obese, according to the World Health Organization.
Obesity is a complex disease that affects multiple organ systems and is associated with an increased risk of various comorbidities, including type 2 diabetes, cardiovascular disease, and certain cancers.
Given the significant health risks associated with obesity, the demand for effective and sustainable treatments is rapidly growing.
The landscape of obesity treatment is quickly evolving, with advances in both medical and surgical therapies.
Traditional weight loss therapies such as lifestyle interventions, diet, and exercise have limited effectiveness in achieving long-term weight loss, and patients often struggle to maintain their weight loss over time.
As a result, there has been a growing interest in the use of medical devices as a tool for weight loss.
Endoluminal surgeries, which are the focus of Apollo Endosurgery’s product portfolio, offer a minimally invasive alternative to traditional weight loss surgeries.
They are often used in conjunction with lifestyle interventions and are designed to reduce the size of the stomach, helping patients feel fuller more quickly and eat less.
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