Medical system large Boston Scientific introduced a $3.7 billion deal on Monday to reinforce its urology portfolio. The corporate is buying Axonics, a maker of neurostimulation units that deal with urinary and bowel dysfunction, for $71 in money per share.
The deal, introduced at this yr’s J.P. Morgan Healthcare Convention in San Francisco, is predicted to shut within the first half of 2024. Consultants agree that the acquisition of Axonics’ system portfolio will make a worthwhile influence on Boston Scientific’s urology enterprise.
This newest acquisition is a continuation of Boston Scientific’s “shopping for spree over the previous 12-18 months throughout a number of medtech sectors,” identified Jennifer O’Brien, a associate in West Monroe’s mergers and acquisitions follow, in a press release she despatched to MedCity Information.
In 2022, the corporate introduced acquisitions of hydrogel maker Obsidio, endoscopy system producer Apollo Endosurgery and cardiovascular remedy system firm Acotec Scientific. Final yr, the corporate purchased Relievant Medsystems, which makes units for power again ache.
Southern California-based Axonics, which went public in 2018, affords each rechargeable and recharge-free implants for sacral neuromodulation — a minimally invasive process that treats overactive bladder and bowel incontinence. One of these remedy delivers delicate electrical pulses to the sacral nerves, which management the bladder, bowel and pelvic ground muscle tissues.
This modulation will help regulate and normalize nerve signaling — resulting in improved coordination of bladder and bowel actions, decreased urinary incontinence and alleviation of signs related to pelvic ground dysfunction.
Axonics’ newest investor deck exhibits that the corporate owns a 27% share of the sacral neuromodulation market. In 2022, about 14,000 individuals had been implanted with Axonics’ system — whereas about 37,500 had been implanted with the one produced by Medtronic.
BTIG analysts Marie Thibault and Sam Eiber identified that the sacral neuromodulation market is way from reaching its full potential.
“This market stays considerably underpenetrated with [sacral neuromodulation] holding simply 23% share of third line remedy and with solely 7% of adults recognized with [overactive bladder] by a doctor handled with third line remedy,” they wrote in their analyst report.
Their report acknowledged that Axonic’s portfolio will “function a pleasant adjacency” for Boston Scientific’s urology enterprise, given its profile for top development in an underpenetrated market. O’Brien agreed, including that Axonics will now have the worldwide advertising and distribution platform it wants to achieve extra sufferers throughout the globe.
Axonics stated it expects to ship a internet income of $366 million for 2023, which might characterize 34% development over the prior fiscal yr.
Photograph: designer491, Getty Photos
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