Boston Scientific has made an upfront cash payment of $850 million to take over Relievant Medsystems, a private medical technology company that designs solutions to diagnose and treat vertebrogenic chronic low back pain.
Relievant’s flagship product is the Intracept system, the only FDA-cleared solution for this type of pain. The system is used in minimally invasive outpatient procedures and requires no implants, instead using targeted radiofrequency energy to stop the basivertebral nerve from transmitting pain signals to the brain to improve functioning and provide long-term relief.
Recent clinical trials conducted by the company show that its solution reduces the long-term need for additional low back pain treatments, including opioid use, spine injections, and fusion surgeries, saving patients thousands. It also is associated with quick recovery times, and patients often feel pain relief within two weeks following the procedure, according to the studies.
“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,” said Jim Cassidy, president of neuromodulation at Boston Scientific, in a statement.
According to Relievant, the Intracept system is estimated to rake in more than $70 million in sales in 2023, and 50% year-over-year growth in excess in 2024.
Boston Scientific will also pay undisclosed additional contingent payments based on its sales performance over the next three years.
The companies are aiming to close the deal in the first half of 2024, with the transaction expected to be immaterial to adjusted earnings per share in 2024, slightly accretive in 2025, and increasingly accretive thereafter.
Recently, Boston Scientific was in talks to acquire Shockwave Medical
, a cardiovascular device company that develops intravascular lithotripsy solutions for breaking down calcium deposits in arteries. The deal would be its second-largest acquisition ever, though the price was not revealed.
It also has expanded its operations
, adding 400 new positions, as part of an €80 million (over $86 million) investment, in manufacturing, research, and development at its Clonmel site in County Tipperary, Ireland.