Boston Scientific beefs up urology portfolio with acquisition of NxThera for up to US$406mln
Boston Scientific Corporation (NYSE:BSX) has beefed up its portfolio of urology treatments after it struck a deal to acquire privately-held biotech NxThera.
Minnesota-based NxThera has developed and commercialized the Rezūm system – a minimally invasive therapy which treats the symptoms of benign prostatic hyperplasia.
Deal could cost up to US$406mln
Boston – which is perhaps best known for its Taxus stent – will pay US$306mln in cash up front, followed by up to US$100mln in potential commercial milestone payments.
The multi-billion dollar medical device maker already owns a minority stake in NxThera, and the acquisition is expected to result in a net upfront payment of approximately US$240mln upon closing and milestone payments of up to US$85mln.
“We are excited to announce this agreement with Boston Scientific,” said NxThera president and chief executive Bob Paulson.
“Their strong leadership in the field of urology will help drive the Rezūm system forward and ensure that more men have access to this treatment option.”
FDA and EU approvals
BPH is a non-cancerous enlargement of the prostate that affects more than 100mln men around the world and can lead to sufferers needing to urinate frequently and loss of bladder control altogether.
The Rezūm system uses water vapor to remove excess prostate tissue and removing the obstruction to urine flow, which helps to reduce BPH-related symptoms.
A recent study published in the Journal of Urology showed that patients treated with the Rezūm system had clinical progression rates that were five times lower than patients treated with daily, long-term medications.
The US Food and Drug Administration cleared the system back in 2015 and European regulators have also granted it a CE mark.
Not expected to be earnings accretive until 2020
“The Rezūm system is an innovative therapy for men with symptomatic BPH that helps patients with a minimally invasive approach while reducing the cost and unwanted side effects that comes with taking maintenance medications,” said Boston’s senior vice president Dave Pierce.
The acquisition, which is expected to close in the second quarter of 2018, is likely to be “immaterial” to Boston Scientific’s adjusted earnings per share though 2020 and accretive thereafter.
Shares were unchanged in pre-market trading at US$27.67.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/193556/boston-scientific-beefs-up-urology-portfolio-with-acquisition-of-nxthera-for-up-to-us406mln-193556.html
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