Boston Scientific Corp (NYSE: BSX)
Boston Scientific said today that it will buy Millipede – the developer of IRIS Transcatheter Annuloplasty Ring System – in a deal worth approximately $325 million. The deal is expected to be finalized during the first quarter of 2019 subject to customary closing conditions.
Both companies initially came to an agreement at the beginning of the year, with Boston Scientific purchasing $90 million in existing and newly-issued shares of Millipede shares. The deal also allowed Boston Scientific an option to buy the remaining shares of Millipede for $325 million, with $125 million payment being available upon achieving a commercial milestone.
IRIS transcatheter annuloplasty ring is a treatment designed for people who suffer from severe mitral regurgitation and are not able to tolerate open-heart surgery. The Mayo Clinic says that people suffering from mitral regurgitation have a leaky valve that doesn’t close the way it ought to, thus allowing blood to flow back into the left atrium. The condition can result in irregular heartbeats or heart failure if left untreated.
Boston Scientific will now be at a better position to build out its cardiac portfolio and take on the transcatheter mitral repair and replacement market, which is estimated to hit $1 billion by 2021. Shares of Boston Scientific have rallied 34% this year and were up 0.59% at 3:30 p.m. in New York on Thursday.
Boston Scientific Executive Comments
“Upon commercialization, we believe the IRIS system can meet the needs of a currently underserved patient population that requires physiological, less invasive options to treat functional mitral regurgitation in patients with progressive heart failure,” said Professor Ian Meredith, AM, executive vice president and global chief medical officer, Boston Scientific.
“This device is designed to be highly customizable to a specific patient’s mitral anatomy and disease state, and is repositionable and retrievable to promote a high-quality outcome.”
Millipede Executive Comments
“We are very satisfied with the early results of our clinical program and are excited to see this technology further leveraged by Boston Scientific to expand the mitral repair solutions for patients around the world,” said Randy Lashinski, co-founder and CEO, Millipede, Inc.
Boston Scientific Corp. Profile
Boston Scientific Corp. engages in the development, manufacture and marketing of medical devices that are used in interventional medical specialties. It operates through the following segments: Cardiovascular, Rhythm Management, and MedSurg.
The Cardiovascular segment comprises of technologies or diagnosing and treating coronary artery disease, and other cardiovascular disorders including structural heart conditions. The Rhythm Management segment develops implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities.
The MedSurg segment focuses on Endoscopy, which provides devices to diagnose and treat a broad range of gastrointestinal, and pulmonary conditions with innovative and invasive technologies. The company was founded by John E. Abele and Pete Michael Nicholas on June 29, 1979 and is headquartered in Marlborough, MA. – CNN Money