Boston Scientific to buy medical technology company Relievant Medsystems for $850m
Boston Scientific Corporation has struck a definitive deal to purchase Relievant Medsystems for an upfront payment of $850 million. Additional undisclosed contingent payments are also agreed upon based on Relievant Medsystems’ sales performance over the next three years.
FDA-Approved Intracept System a Game-Changer for Vertebrogenic Pain
The acquisition includes the Intracept Intraosseous Nerve Ablation System, which is the only system cleared by the U.S. Food and Drug Administration (FDA) for treating vertebrogenic pain. This type of chronic low back pain affects an estimated 5.3 million people in the U.S. The Intracept system is a minimally invasive outpatient procedure that utilizes targeted radiofrequency energy to cease the basivertebral nerve from sending pain signals to the brain.
Impact on Boston Scientific’s Future Strategy
Jim Cassidy, the president of Neuromodulation at Boston Scientific, stated, “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.”
Boston Scientific to acquire medical technology company Relievant Medsystems for $850m. Photo courtesy of Boston Scientific Corporation or its affiliates.
Financial Expectations and Closing Conditions
The transaction is expected to close in the first half of 2024, contingent upon customary closing conditions. Relievant Medsystems is projected to generate sales exceeding $70 million in 2023, with a year-over-year growth surpassing 50% in 2024. On an adjusted basis, the impact on Boston Scientific’s earnings per share (EPS) is expected to be neutral in 2024, slightly accretive in 2025, and increasingly accretive thereafter.
Comments from Relievant Medsystems
Tyler Binney, president and CEO of Relievant Medsystems, remarked, “Today is an exciting step forward to shaping the future of chronic low back pain with Boston Scientific as a leader in the interventional chronic pain space. This is a testament to the exceptionally talented Relievant team and the innovative engine behind the Intracept system. Together with Boston Scientific, we can accelerate our journey to provide life-changing relief to patients by transforming the diagnosis and treatment of vertebrogenic pain.”