Boston Scientific Acquires NxThera for $406 Million
The rumors have been discussed for two years that Boston Scientific would acquire NxThera, the developer of Rezum, a minimally invasive therapy that treats BPH (benign prostatic hyperplasia).
Today Boston Scientific made it official, acquiring NxThera for a total of $406 million.
Boston Scientific is poised to expand treatment offerings for benign prostatic hyperplasia with an agreement to acquire NxThera & its Rezum system. https://t.co/w2oYt9gId9— Boston Scientific (@bostonsci) March 21, 2018
According to the press release, the transaction consists of an upfront cash payment of $306 million, and up to an additional $100 million in potential commercial milestone payments over the next four years. Boston Scientific has an existing minority investment in NxThera, which is expected to result in a net upfront payment of approximately $240 million upon closing and milestone payments of up to $85 million.
Boston Scientific expects the deal to close in the second quarter of 2018 and the acquisition is expected to be immaterial to their adjusted earnings per share (EPS) through 2020 and accretive thereafter.
"We are excited to announce this agreement with Boston Scientific," said Bob Paulson, president and chief executive officer, NxThera. "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."
What is Rezum?
"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 Dave Pierce, senior vice president and president, Urology and Pelvic Health, Boston Scientific. "When compared with other minimally invasive BPH therapies, patients treated with the Rezūm system spend less time in the doctor's office and have longer lasting improvement in their symptoms."
NxThera's Rezum will join Boston Scientific's Urology and Pelvic Health portfolio, which includes a range of treatment options for men's and women's urological and gynecological conditions such as a portfolio of laser therapy systems for the treatment of symptomatic BPH.
NxThera's Rezum competes with the NeoTract UroLift system, which was acquired by Teleflex in 2017.
Join the discussion on the NxThera board.