USA — Boston Scientific, a renowned medtech giant, has embarked on a significant acquisition journey following the stalled US$230 million purchase of Korean stent manufacturer M.I.Tech earlier this year.
Now, it is making an even more substantial investment, with plans to deploy a staggering US$850 million in cash to acquire Relievant Medsystems, a Minnesota-based innovator in ablation technology for chronic lower back pain.
This acquisition carries the potential for further growth, with additional contingent payments contingent on Relievant’s future sales performance over the next three years.
Jim Cassidy, President of Neuromodulation at Boston Scientific, expressed enthusiasm about the acquisition, stating, “We anticipate this novel, clinically-backed technology can support our category leadership strategy while expanding access to care for individuals who need personalized treatment.
“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.”
The official confirmation of this deal is anticipated to take place sometime in the first half of the upcoming year.
Relievant Medsystems, founded nearly two decades ago, focused its efforts on developing nerve ablation technology that ultimately resulted in the Intracept system.
This technology, similar to other ablation systems, involves the minimally invasive insertion of a catheter that emits targeted radiofrequency energy, effectively eliminating abnormal activity within the body.
In the case of the Intracept system, the catheter is precisely directed at the basivertebral nerve, aiming to interrupt the transmission of pain signals to the brain.
The Intracept system earned FDA clearance in 2016 and remains the sole system specifically approved to treat vertebrogenic pain—a particular form of chronic low back pain resulting from damage to the vertebral endplates.
Shockingly, this condition affects over 5 million individuals in the United States alone, as reported by Boston Scientific.
This strategic acquisition aligns with Relievant’s remarkable growth trajectory, with the company expected to achieve sales exceeding US$70 million this year.
This figure is projected to surge by over 50% in 2024, a period during which it will be under the Boston Scientific umbrella, if all unfolds as planned.
Boston Scientific predicts that this acquisition will have an immaterial impact on its 2024 earnings, becoming slightly accretive the following year, and progressively more accretive from 2026 onward.
This move to acquire Relievant marks Boston Scientific’s first major merger and acquisition since its reevaluation of the previously intended purchase of M.I.Tech.
The company attributed the abandonment of the M.I.Tech deal to challenges in securing the necessary global regulatory approvals in certain countries.
In lieu of the M.I.Tech acquisition, Boston Scientific has shifted its strategy to acquire approximately 9.9% of the devicemaker, redirecting its resources toward the transformative Relievant acquisition poised to reshape the landscape of chronic lower back pain treatment.
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