Boston Scientific will acquire Baylis Medical Company for $1.75 billion
Boston Scientific to acquire Baylis Medical for $1.75 billion
October 12, 2021
by John R. Fischer, Senior Reporter
Boston Scientific Corporation has put up $1.75 billion to acquire Baylis Medical Company.
The addition of Baylis Medical adds its radiofrequency NRG and VersaCross Transseptal platforms for left heart access to Boston Scientific’s electrophysiology and structural heart product portfolios. Also included are a family of guidewires, sheaths and dilators.
Traditional use of mechanical needles to pass the septum and access the left side of the heart comes with safety concerns, and individual patient anatomies can make placing the needle correctly challenging. Baylis Medical Company solutions are designed to make crossing the atrial septum safer and more effective for providing treatment during procedures such as atrial fibrillation ablation, left atrial appendage closure and mitral valve interventions.
As a result, Baylis Medical Company has been able to achieve double-digit year-over-year sales growth in each of the last five years, and is expected to rack up net sales of close to $200 million in 2022, according to Boston Scientific. "All of these procedures require physicians to puncture the wall that separates the right atrium from the left atrium – also known as the septum – a procedure that the Baylis Medical technologies can streamline and make safer. As a result, the transseptal access market is expected to grow double digits in the coming years."
Using RF energy, the NRG Transseptal Needle is designed to save time as it performs a transseptal puncture of the left heart, while reducing the risk for serious complications, compared to mechanical solutions. It can cross difficult anatomies and the septum at precise locations, localize the RF needle on mapping systems and reduce fluoroscopy time for transseptal puncture. In addition to the needle, the NRG Transseptal platform includes the ExpanSure Large Access Transseptal Dilator, NRG Large Access Solution for optimizing tissue dilation, TorFlex Transseptal Guiding Sheath, SureFlex Steerable Guiding Sheath, ProTrack Pigtail Wire, and the NRG RF Transseptal Kit.
The VersaCross RF Transseptal Solution offers the same benefits without the need for wire and sheath exchanges. This allows users to rely on only one solution from start to finish, helps mitigate risks, and streamlines operations and therapy delivery. It also comes with precise RF puncture technology. Its other component, the VersaCross Large Access Solution uses the exchangeless three-in-one RF wire and seamless dilator to allow for smooth delivery of large therapy sheaths.
"Specifically, the new VersaCross platform further streamlines transseptal crossing procedures and therapy delivery by offering the same benefits while eliminating potential wire and sheath exchanges, which may help mitigate risks during procedures," said Boston Scientific. "Bringing the two organizations together also allows for partnership in key development areas."
Baylis Medical Company’s solutions make transseptal access to the left side of the heart more predictable and safe. They also improve the safe and effective transseptal puncture of the left heart during procedures. The Baylis Medical product development activities are expected to continue at the Baylis Medical facilities in collaboration with Boston Scientific's rhythm management and interventional cardiology businesses headquartered in Minnesota. Boston Scientific expects its existing international market reach to open up new opportunities that will help accelerate the adoption of Baylis Medical technologies globally.
"We look forward to making these life-changing technologies available to more patients across the globe through the significant commercial reach of Boston Scientific,” said Kris Shah, president of Baylis Medical Company, in a statement.
Earlier this year, Boston Scientific acquired Preventice Solutions for $1.2 billion. The deal gave it access to mobile cardiac health solutions and services, ranging from ambulatory cardiac monitors to cardiac event monitors and mobile cardiac telemetry. It also just last month acquired Devoro Medical, the developer of the WOLF Thrombectomy Platform, which is designed with finger-like prongs to retrieve and remove thrombi in the arterial and venous systems.
The NRG platform was cleared by the FDA in 2008 and has been used in over one million procedures. VersaCross got clearance in 2020.
The deal is expected to be completed in the first quarter of 2022 and is expected to be approximately one cent accretive to adjusted earnings per share in 2022, and increasingly accretive thereafter. It is subject to customary closing conditions.
The addition of Baylis Medical adds its radiofrequency NRG and VersaCross Transseptal platforms for left heart access to Boston Scientific’s electrophysiology and structural heart product portfolios. Also included are a family of guidewires, sheaths and dilators.
Traditional use of mechanical needles to pass the septum and access the left side of the heart comes with safety concerns, and individual patient anatomies can make placing the needle correctly challenging. Baylis Medical Company solutions are designed to make crossing the atrial septum safer and more effective for providing treatment during procedures such as atrial fibrillation ablation, left atrial appendage closure and mitral valve interventions.
As a result, Baylis Medical Company has been able to achieve double-digit year-over-year sales growth in each of the last five years, and is expected to rack up net sales of close to $200 million in 2022, according to Boston Scientific. "All of these procedures require physicians to puncture the wall that separates the right atrium from the left atrium – also known as the septum – a procedure that the Baylis Medical technologies can streamline and make safer. As a result, the transseptal access market is expected to grow double digits in the coming years."
Using RF energy, the NRG Transseptal Needle is designed to save time as it performs a transseptal puncture of the left heart, while reducing the risk for serious complications, compared to mechanical solutions. It can cross difficult anatomies and the septum at precise locations, localize the RF needle on mapping systems and reduce fluoroscopy time for transseptal puncture. In addition to the needle, the NRG Transseptal platform includes the ExpanSure Large Access Transseptal Dilator, NRG Large Access Solution for optimizing tissue dilation, TorFlex Transseptal Guiding Sheath, SureFlex Steerable Guiding Sheath, ProTrack Pigtail Wire, and the NRG RF Transseptal Kit.
VersaCross pigtail
The VersaCross RF Transseptal Solution offers the same benefits without the need for wire and sheath exchanges. This allows users to rely on only one solution from start to finish, helps mitigate risks, and streamlines operations and therapy delivery. It also comes with precise RF puncture technology. Its other component, the VersaCross Large Access Solution uses the exchangeless three-in-one RF wire and seamless dilator to allow for smooth delivery of large therapy sheaths.
"Specifically, the new VersaCross platform further streamlines transseptal crossing procedures and therapy delivery by offering the same benefits while eliminating potential wire and sheath exchanges, which may help mitigate risks during procedures," said Boston Scientific. "Bringing the two organizations together also allows for partnership in key development areas."
Baylis Medical Company’s solutions make transseptal access to the left side of the heart more predictable and safe. They also improve the safe and effective transseptal puncture of the left heart during procedures. The Baylis Medical product development activities are expected to continue at the Baylis Medical facilities in collaboration with Boston Scientific's rhythm management and interventional cardiology businesses headquartered in Minnesota. Boston Scientific expects its existing international market reach to open up new opportunities that will help accelerate the adoption of Baylis Medical technologies globally.
"We look forward to making these life-changing technologies available to more patients across the globe through the significant commercial reach of Boston Scientific,” said Kris Shah, president of Baylis Medical Company, in a statement.
Earlier this year, Boston Scientific acquired Preventice Solutions for $1.2 billion. The deal gave it access to mobile cardiac health solutions and services, ranging from ambulatory cardiac monitors to cardiac event monitors and mobile cardiac telemetry. It also just last month acquired Devoro Medical, the developer of the WOLF Thrombectomy Platform, which is designed with finger-like prongs to retrieve and remove thrombi in the arterial and venous systems.
The NRG platform was cleared by the FDA in 2008 and has been used in over one million procedures. VersaCross got clearance in 2020.
The deal is expected to be completed in the first quarter of 2022 and is expected to be approximately one cent accretive to adjusted earnings per share in 2022, and increasingly accretive thereafter. It is subject to customary closing conditions.