Acquisition intended to expand neuromodulation
portfolio to provide more treatment options for people living with
chronic low back pain
MARLBOROUGH, Mass., Sept. 19,
2023 /PRNewswire/ -- Boston Scientific Corporation
(NYSE: BSX) today announced it has entered into a definitive
agreement to acquire Relievant Medsystems, Inc., a privately held
medical technology company that has developed and commercialized
the Intracept® Intraosseous Nerve Ablation System to
treat vertebrogenic pain, a form of chronic low back pain. The
transaction includes an upfront cash payment of $850 million and undisclosed additional
contingent payments based on sales performance over the next three
years.
As the only U.S. Food and Drug Administration-cleared system for
vertebrogenic pain, the Intracept system is a minimally invasive,
implant-free outpatient procedure. The therapy uses targeted
radiofrequency energy to stop the basivertebral nerve from
transmitting pain signals to the brain and is designed to improve
function and provide long-term relief. In the U.S., there is an
estimated population of approximately 5.3 million people living
with vertebrogenic pain.1
″We anticipate this novel, clinically-backed technology can
support our category leadership strategy while expanding access to
care for individuals who need personalized treatment,″ said
Jim Cassidy, president,
Neuromodulation, Boston Scientific. ″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 expects to close the transaction in the first
half of 2024, subject to satisfaction of customary closing
conditions. Relievant is expected to generate sales in excess of
$70 million in 2023 and to deliver
year-over-year growth in excess of 50% in 2024. On an adjusted
basis, the transaction is expected to be immaterial to adjusted
earnings per share (EPS) in 2024, slightly accretive in 2025, and
increasingly accretive thereafter. On a GAAP basis, the transaction
is expected to be more dilutive due to amortization expense and
acquisition-related charges.
"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,″ said Tyler Binney, president and CEO of Relievant.
″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.″
About Boston Scientific
Boston Scientific
transforms lives through innovative medical solutions that improve
the health of patients around the world. As a global medical
technology leader for more than 40 years, we advance science for
life by providing a broad range of high performance solutions that
address unmet patient needs and reduce the cost of healthcare. For
more information, visit www.bostonscientific.com and
connect on Twitter and Facebook.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements may be identified by words like
"anticipate," "expect," "project," "believe," "plan," "estimate,"
"intend" and similar words. These forward-looking statements are
based on our beliefs, assumptions and estimates using information
available to us at the time and are not intended to be guarantees
of future events or performance. These forward-looking statements
include, among other things, statements regarding closing of the
transaction and the timing thereof, the financial and business
impact of the transaction, expected net sales and related growth
rates, product launches and product performance and impact. If our
underlying assumptions turn out to be incorrect, or if certain
risks or uncertainties materialize, actual results could vary
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including cost savings and growth initiatives; future business
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Item 1A – Risk Factors in our most recent Annual
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– Risk Factors in Quarterly Reports on Form 10-Q
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CONTACTS:
Jessica Sachariason
Media Relations
+1 (415) 730-2310
jessica.sachariason@bsci.com
Lauren Tengler
Investor Relations
+1 (508) 683-4479
BSXInvestorRelations@bsci.com
1 Hoy D, March L, Brooks P, et al. The global burden
of low back pain; estimates from the Global Burden of Disease 2010
study. Annals of the Rheumatic Diseases 2014;73:968-974.
https://ard.bmj.com/content/73/6/968;The global point prevalence of
LBP was 9.4% (95% CI 9.0 to 9.8), (333M U.S. pop * 9.4% = 31M); Lorio et al. International Journal
of Spine Surgery December
2022, 16 (6) 1084-1094; DOI:
https://doi.org/10.14444/8362;http://www.ijssurgery.com/content/16/6/1084;
estimated that 15% of CLBP patients suffer from primary
vertebrogenic pain.
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SOURCE Boston Scientific Corporation