Boston Scientific is extending its reach into the renal denervation market by signing a definitive agreement to acquire Vessix Vascular, a privately held company in Laguna Hills, Calif., for $425 million.
Vessix has developed a catheter-based renal denervation system for the treatment of uncontrolled hypertension. The acquisition is expected to close by the end of November, according to the Natick, Mass.-based Boston Scientific.
Renal denervation is an catheter-based therapy for medication-resistant hypertension that uses radiofrequency energy to disrupt the renal sympathetic nerves whose hyperactivity leads to uncontrolled high blood pressure.
The V2 renal denervation system has received CE Mark in Europe and Therapeutics Goods Administration approval in Australia. Vessix Vascular has initiated the REDUCE-HTN postmarket surveillance study and expects to initiate a full launch of the product in CE Mark countries in 2013.
Upon completion of the acquisition, Vessix Vascular will become part of the peripheral interventions business at Boston Scientific. The portfolio of this business includes devices that treat vascular system blockages in areas such as the carotid and renal arteries and the lower extremities.
The agreement calls for an upfront payment of $125 million, plus additional clinical- and sales-based milestones aggregating a maximum of $300 million over the period between 2013 and 2017. Boston Scientific said it currently expects the net impact of this transaction on adjusted earnings per share to be immaterial for years 2013 and 2014 and break-even to accretive thereafter.
The V2 renal denervation system is an investigational device and not available for use or sale in the U.S.