Boston Scientific announced on 5 January 2011 the acquisition of Intelect Medical a company that is developing advanced neuromodulation technologies for Deep Brain Stimulation therapy.
The transaction values Intelect Medical at US$78 million with no cash and no debt on its balance sheet. As a result of Boston Scientific’s existing equity and debt positions in Intelect Medical, the total cash payment by Boston Scientific was approximately US$60 million, which was funded with cash on hand. Boston Scientific estimates the current worldwide market for deep brain stimulation at US$400 million with projections to grow to more than US$1.5 billion by 2020.
Intelect Medical is developing the Guide DBS programming system, the first method to enable clinicians to visualise stimulation fields in the brain and provide more precise targeting of therapy. This innovative technology combined with Boston Scientific’s Vercise deep brain stimulation system is expected to provide practitioners substantially improved treatment for their patients. The Vercise deep brain stimulation system is a neurostimulation device designed to deliver electrical signals to specific areas within the brain through individual lead contacts that allow a more tailored amount of current flow based on patient needs. Boston Scientific recently announced the first Vercise deep brain stimulation system implant as part of its VANTAGE clinical trial to treat Parkinson’s disease.
“The acquisition of Intelect Medical supports our long-term strategy of enhancing our product portfolio and gaining market share in the neuromodulation space, and it will help us to provide the most advanced deep brain stimulation technology solutions for neurologists, neurosurgeons and their patients,” said Michael Onuscheck, senior vice president and president of Neuromodulation for Boston Scientific.
The Vercise deep brain stimulation system is an investigational device and is limited by applicable law to investigational use only and is not available for sale.
