Boston Scientific Advances $3.7B Acquisition of Axonics with Shareholder Approval

Mar 27, 2024 00:16 CST Updated 00:16

Axonics

Developer of Novel Implantable Neuromodulation Technologies

Boston Scientific

Medical Device Manufacturer

Source: Siyu MedTech

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On March 26, 2024, Axonics (NASDAQ: AXNX) announced that its shareholders had voted to approve the $3.7 billion merger agreement with Boston Scientific Corporation (NYSE: BSX).

As early as January 8 this year, Boston Scientific Corporation announced its intention to acquire Axonics.Review:$26.2 Billion Mega-Acquisition! Boston Scientific Enters Sacral Neuromodulation Market

# A Rocky Road of Acquisition

Earlier this month,Foreign Media RevealsThe U.S. Federal Trade Commission (FTC) may investigate this acquisition deal. Boston Scientific's extensive sales network and distribution system have raised FTC concerns about antitrust issues.

Misfortunes never come singly. In early March,Axonics has also faced resistance from Medtronic, which aims to block the sale of certain Axonics devices. The reason is that Medtronic believes "Axonics"Improperly importing and selling products that infringe on two Medtronic patents, which are related to MRI compatibility of implantable medical devices."

Actually,Since 2019Start,The intellectual property dispute between the two companies has never ceased. But more often,The scales of the U.S. Patent Trial and Appeal Board (PTAB) still tilt toward Medtronic. Review:Breaking! Medtronic Launches an Offensive Against Boston Scientific

And just as the acquisition became uncertain, 2024March 22AxonicsReceived a piece of good news, the companyTheThe shareholders held a special meeting and conducted a vote, the results of which showed,AxonicsThe majority of common shares voted in favor of the acquisition agreement.

Axonics has developed neuromodulation systems for the treatment of urinary and bowel dysfunction. A foreign analyst once commented,Axonics' ProductsHighly complementary to Boston Scientific Corporation's business, After the acquisition is completed, Boston Scientific can enter the sacral neuromodulation market.。

#Axonics, a competitor of Medtronic

The implantable sacral nerve stimulation system is a medical technology used to treat chronic pain, initially for sciatica, and later gradually expanded to address other types of chronic pain, such as degenerative disc disease and complex regional pain syndrome.Excessive bladder activity (OAB), etc.

Medtronic, Nuvectra, and China's PINS and Promise have all laid out plans for implantable sacral nerve stimulators.Review:Implantable Sacral Nerve Stimulators: Medtronic, PINS Medical, Chengdu Promise Technology, Nuvectra, Axonics

Among them, Medtronic is the pioneer of sacral neuromodulation. Before Axonics launched its Axonics series of implantable sacral nerve stimulators, the market was largely monopolized by Medtronic.

Medtronic'sInterStim is a widely used sacral nerve stimulation system that helps adjust and control bladder and bowel function by applying microstimulation to the sacral nerves.In 2022, Medtronic announced that its InterStim X received FDA approval, which is part of the InterStim product portfolio.Next-Generation Recharge-FreeEquipment.

The emergence of Axonics broke this monopoly.

Axonics is located in Irvine, California, USA, and the company isThe world's first to overcome the miniaturization challenge of implantable electrode stimulation devicesThe company.Axonics Ranked Second on the 2023 Americas Fastest Growing Companies List Published by the U.S. Financial Times

At the outset of its establishment, the Axonics team discovered through market research that the technical challenge of SNM lies in battery life. The average battery life of neurostimulators at the time was only 4 years, forcing patients to undergo frequent device replacement surgeries. If a patient needed to undergo an MRI scan, it would also have to be removed.

In response, Axonics has developed both recharge-free and rechargeable SNM systems.

ItsFourth-Generation R20™ Rechargeable Sacral Neuromodulation (SNM) System (Battery life lasts up to 20 years) has received FDA approval. In addition, Axonics has launched the recharge-free F15™ SNM system, which is comparable to Medtronic'sInterStim X, which is smaller in size and has a longer service life。

With Axonics SystemThe listing of implantable sacral nerve stimulators,Axonics has snatched away from MedtronicMore than 25%CityIt is the high market recognition of Axonics' products that prompted Boston Scientific to decide to acquire Axonics.

In 2018, Axonics went public on Nasdaq with its innovative sacral nerve stimulation product for the treatment of urinary incontinence.

In the fiscal year 2022, the company's net revenue reached 274 million US dollars.

Net Revenue for Fiscal Year 2023 Estimated at $366 Million, with Gross Margin Approximately 75%.

#Supermarket, Broad Prospects

According to Mordor Intelligence, the global sacral neuromodulation (also known as sacral nerve stimulation) market sizePlanned toIt will reach 3.3 billion US dollars in 2027.During the forecast period (2022-2027), the sacralNerveThe compound annual growth rate of the stimulation market is expected to be 5.5%.

Currently, the seven major international giants—Medtronic, Abbott, Boston Scientific, LivaNova, Nevro, Nuvectra, and NeuroPace—almost dominate the entire neuromodulation market due to their first-mover advantage.

In China, in September 2018, the implantable sacral nerve stimulator BetterStim developed by PINS Medical was approved for registration; in June 2023, the implantable sacral nerve stimulator produced by Promise Medical was approved for registration.

Compared with the United States, China's implantable sacral nerve stimulation industry started relatively late. However, the health awareness of Chinese residents is continuously increasing, and their willingness to spend on medical expenses is constantly improving. Against the background of a growing elderly population, the future market prospects for implantable sacral nerve stimulators are broad.

This time, the approval by Axonics' shareholders means that it is one step closer to entering this massive market.

It is reported that the acquisition is expected to be completed in the first half of 2024, and Axonics will become a wholly-owned subsidiary of Boston Scientific.

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Editor-in-Chief | Zhao Qing Reviewed by | Yi He