Boston Scientific, a prominent medical device manufacturer, announced on Monday its acquisition of Axonics Inc for a substantial $3.7 billion, a move aimed at expanding its presence in the medical field.
Through this strategic deal, Boston Scientific gains access to Axonics’ innovative devices designed to enhance bladder function.
This acquisition marks Boston Scientific’s foray into the realm of sacral neuromodulation, a minimally invasive procedure that plays a crucial role in addressing overactive bladder and fecal incontinence.
It represents a pivotal step in the company’s ongoing efforts to bolster its urology business portfolio.
Renowned for producing a wide range of medical devices, including pacemakers, stents, and catheters, Boston Scientific will be offering a purchase price of $71 in cash per share, reflecting a generous 23.3% premium compared to Axonics’ last closing stock price.
Following this announcement, Axonics’ shares surged by an impressive 22% in premarket trading, showcasing the market’s positive response to the acquisition.
Axonics is well-known for its revolutionary products such as Axonics R20 and Axonics F15, both designed to administer sacral neuromodulation therapy.
This therapy involves the delivery of gentle electrical pulses to the sacral nerve, effectively restoring communication between the brain and the bladder.
Additionally, Axonics boasts a diverse product portfolio that includes Bulkamid, a minimally invasive treatment option specifically aimed at addressing urinary incontinence in women.
The transaction is anticipated to be finalized during the first half of 2024.
Boston Scientific expects Axonics to generate net revenue of approximately $366 million in 2023, with the deal expected to make a positive impact on its urology business starting in 2024.
This acquisition aligns with Boston Scientific’s recent trend of strategic purchases, demonstrating its commitment to expanding its capabilities and offerings.
In September, the company entered into an agreement to acquire Relievant Medsystems for an upfront cash payment of $850 million, granting access to an FDA-cleared therapy for chronic pain.
Prior to that, Boston Scientific acquired Acotec Scientific, a Chinese medical technology company, for approximately $523 million.
In summary, Boston Scientific’s acquisition of Axonics Inc signifies a significant milestone in its quest to strengthen its presence in the medical industry, particularly within the urology sector.
This strategic move is expected to bring about innovative solutions and advancements in medical device technology, benefiting patients worldwide.