MERGERS & ACQUISITIONS
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Boston Scientific strikes $425 million deal to buy Vessix Vascular
The Laguna Hills-based medical device company's shareholders will receive $125 million upfront to close the deal
by Gabriel CortésPublished: November 14, 2012 09:05 AM
Boston Scientific Corporation has reached a $425 million deal to acquire Vessix Vascular, a Laguna Hills-based medical device company. The acquisition carries an initial price tag of $125 million with the promise of an additional $300 million if Vessix meets certain clinical and sales milestones. The deal should be finalized by the end of the month.
Vessix manufactures the V2 Renal Denervation System, which uses balloon catheter technology to treat medication-resistant hypertension, or high blood pressure. The minimally invasive procedure uses balloon catheters to deliver radiofrequencies and ablate the sympathetic nerves along the walls of the renal arteries.
While the treatment is not currently available for use or sale in the United States, it has received the CE marking in Europe and won the approval of the Therapeutic Goods Administration in Australia.
“Hypertension is a major global healthcare challenge, affecting more than one billion people worldwide,” said Boston Scientific President and CEO Mike Mahoney. “Renal denervation represents a potential breakthrough therapy for the treatment of uncontrolled hypertension and is an important part of the Boston Scientific growth strategy.”
The company expects that the hypertension treatment industry will grow to be a multi-billion dollar market by 2020. When the acquisition is finalized, Vessix will become part of the peripheral interventions division at Boston Scientific.
It is estimated that more than 56 million adults in the United States suffer from hypertension, and high blood pressure has been determined to be a major risk factor for heart disease, renal disease and stroke.
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Vessix manufactures the V2 Renal Denervation System, which uses balloon catheter technology to treat medication-resistant hypertension, or high blood pressure. The minimally invasive procedure uses balloon catheters to deliver radiofrequencies and ablate the sympathetic nerves along the walls of the renal arteries. While the treatment is not currently available for use or sale in the United States, it has received the CE marking in Europe and won the approval of the Therapeutic Goods Administration in Australia. “Hypertension is a major global healthcare challenge, affecting more than one billion people worldwide,” said Boston Scientific President and CEO Mike Mahoney. “Renal denervation represents a potential breakthrough therapy for the treatment of uncontrolled hypertension and is an important part of the Boston Scientific growth strategy.” The company expects that the hypertension treatment industry will grow to be a multi-billion dollar market by 2020. When the acquisition is finalized, Vessix will become part of the peripheral interventions division at Boston Scientific. It is estimated that more than 56 million adults in the United States suffer from hypertension, and high blood pressure has been determined to be a major risk factor for heart disease, renal disease and stroke. Related headlines Cover Story ~ O.C.'s finger on the pulse An early look at the new Kaiser Permanente O.C. campus South O.C. physicians’ group joins St. Joseph Health |
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