Boston Scientific Corporation has today announced it has entered into a definitive agreement to acquire Relievant Medsystems—a privately held medical technology company that has developed and commercialised the Intracept intraosseous nerve ablation system to treat a form of chronic low back pain called vertebrogenic pain. The transaction includes an upfront cash payment of US$850 million and undisclosed, additional contingent payments based on sales performance over the next three years.
A Boston press release claims that the Intracept system is the only US Food and Drug Administration (FDA)-cleared system for vertebrogenic pain. It involves a minimally invasive, implant-free outpatient procedure, and the therapy uses targeted radiofrequency energy to stop the basivertebral nerve from transmitting pain signals to the brain. This is designed to improve function and provide long-term relief.
″We anticipate this novel, clinically backed technology can support our category leadership strategy while expanding access to care for individuals who need personalised treatment,” said Jim Cassidy, president, Neuromodulation at Boston. ″Upon close, we look forward to working with the Relievant team to explore opportunities to bring this high-growth therapy to a wider population of people living with chronic low back pain.”
Boston expects to close this transaction in the first half of 2024, subject to satisfaction of customary closing conditions. Relievant is expected to generate sales in excess of US$70 million in 2023 and to deliver year-over-year growth in excess of 50% in 2024. On an adjusted basis, the transaction is expected to be immaterial to adjusted earnings per share (EPS) in 2024, slightly accretive in 2025, and increasingly accretive thereafter. On a generally accepted accounting principles (GAAP) basis, the transaction is expected to be more dilutive due to amortisation expense and acquisition-related charges.
“Today is an exciting step forward to shaping the future of chronic low back pain with Boston Scientific as a leader in the interventional chronic pain space,” said Tyler Binney, president and CEO of Relievant. ″This is a testament to the exceptionally talented Relievant team and the innovative engine behind the Intracept system. Together with Boston Scientific, we can accelerate our journey to provide life-changing relief to patients by transforming the diagnosis and treatment of vertebrogenic pain.”