CHINA— Boston Scientific has agreed to pay US$523 million for a majority stake in Chinese medical device maker Acotec Scientific Holdings Limited in order to gain a foothold in China’s growing market for vascular disease technologies.
Acotec Scientific develops medical devices, including drug-coated balloons (DCB) and percutaneous transluminal angioplasty balloon catheters (PTA), which are mainly used to treat vascular interventions.
The company has a complete DCB product portfolio with five therapeutic area targets, including neurology, cardiology, nephrology, andrology, and vascular surgery.
According to a joint statement, the company launched the first peripheral DCBs in China in 2016, and its portfolio includes radiofrequency ablation technologies and thrombus aspiration catheters, as well as more than 20 other products in various stages of development across a variety of specialties.
According to the statement, Actotec made CNY 339 million (US$53 million) in sales in the fiscal year ending June 30, 2022. This represented year-over-year growth of 25% in the first six months of the year.
China is a large and fast-growing market and is expected to make up ~25% of the global MedTech market by 2030 according to KPMG.
Per Boston Scientific’s management, Acotec is a profitable, fast-growing company with a strong portfolio and innovative pipeline of medical technologies with an expanded presence in China.
The completion of the partial offer is expected to strengthen the company’s presence in China and create the potential for the commercialization of Acotec products globally, offering an increased number of physicians and patients access to its robust and complementary product portfolio.
In terms of industry prospects, latest research by McKinsey & Co, China’s healthcare market is projected to grow at a CAGR of nearly 12%, reaching US$2.3 trillion by 2030.
Improvements in infrastructure, the broadening of insurance coverage, and significant support for innovation are the key catalysts driving the market.
The transaction, which is subject to acceptance and approval by shareholders of Acotec Scientific as well as other conditions, is expected to be completed in the first half of next year.
In November, Boston Scientific signed a definitive agreement to acquire medical device company Apollo Endosurgery for nearly US$615 million.
The acquisition is expected to expand Boston Scientific’s endoluminal surgery portfolio and add differentiated technologies for endobariatric procedures.
In the same month, Boston Scientific announced the first results from the ACURATE neo2 Post Market Clinical Follow-up (PMCF) study assessing the performance of the ACURATE neo2TM Aortic Valve System.
The findings demonstrated a high procedural success rate of 98.4% and low mortality and paravalvular leak rates, presented during a late-breaking clinical trial session at PCR London Valves 2022.
For all the latest healthcare industry news from Africa and the World, subscribe to our NEWSLETTER, and YouTube Channel, follow us on Twitter and LinkedIn, and like us on Facebook.
