Boston Scientific Completes $850 Million Acquisition of Relievant Medsystems to Expand Neuromodulation Portfolio

Nov 19, 2023 17:39 CST Updated 17:39

Boston Scientific

Medical Device Manufacturer

Relievant Medsystems

Medical Device Developer

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On November 17, Boston Scientific Corporation announced,Completed the acquisition of Relievant Medsystems, a U.S.-based private medical technology company.

In September, the two parties had already reached an acquisition agreement,Boston Scientific acquired the company for an upfront payment of $850 million (approximately RMB 6.1 billion).In addition, there is a milestone fee, which depends on the sales performance in the next three years.

After the acquisition is completed,Boston Scientific will acquire Relievant's core product – the Intracept Intravertebral Nerve Ablation System. This product is the only system approved by the U.S. Food and Drug Administration (FDA) for the treatment of discogenic pain.Boston Scientific estimates that this acquisition will achieve sales exceeding $70 million in 2023, with an expected year-over-year growth rate of over 50% in 2024.

In fact,Boston Scientific has always been a leader in interventional chronic pain, and the completion of this acquisition will further expand its commercial layout in the neuromodulation sector.

The only FDA-approvedOf

Intervertebral Discogenic Pain Treatment Device

Data shows that Relievant Medsystems, Inc. was founded in 2006 and is headquartered in Minnesota, USA. It is a company dedicated to transforming the diagnosis and treatment of vertebrogenic low back pain. The company focuses on developing innovative medical solutions and continuously strives to advance the field of pain management, aiming to improve the quality of life for patients with chronic low back pain.

July 2016,Relievant Launches Non-Vascular Interventional Ablation Product Intracept System and Receives FDA Approval, Becoming the Only Device Approved for Treating Chronic Discogenic Low Back Pain.

Intracept System

It is reported that this is a minimally invasive surgery targeting the basivertebral nerve, and the principle isBy using heat therapy technology, targeted thermal energy is delivered to the interior of the vertebral body, thereby destroying abnormal nerve conduction tissue and relieving discogenic chronic low back pain.A previous study showed that patients treated with the Intracept system experienced significant improvements in pain and function, and these improvements were safe, effective, and long-lasting.

During treatment, while the patient is under anesthesia,The doctor will insert a small probe into the vertebral body and use radiofrequency to heat the basivertebral nerve. This thermal energy will create a thermal lesion on the nerve conduction tissue to prevent it from transmitting pain signals to the spinal cord and subsequently to the central nervous system.The entire process takes only an hour to complete, and since the probe is thin, this is currently the least invasive, rapid, and implant-free treatment for lumbar pain.

Intracept Simulator

In addition,Relievant Medsystems also launched the advanced training platform for Intracept——the Intracept Simulator System on September 21.The system, co-developed by Relievant and Medable, aims to expand training opportunities and provide physicians with a consistent and reliable learning experience.

It is reported that,The Intracept Simulator System, equipped with Medability's "SimBone™ Simulation Platform," provides radiation-free simulation technology, offering doctors an immersive hands-on training experience, including virtual X-rays, computed tomography (CT) imaging, and navigation with a real lumbar and sacral spine model.

It is estimated that approximately 5.3 million people in the United States suffer from chronic low back pain. Opioids have long been the most common treatment for such patients, whileAs the only FDA-approved device for treating this condition, Intracept has now been chosen by more than 10,000 patients for treatment.

Boston Scientific's Neuromodulation Business Stagnates

Acquisition May Help Drive Growth

Analysts said,Considering the possible stagnation in Boston Scientific's business development over the recent quarters, this acquisition will inject new vitality into Boston Scientific and drive its business growth in the field of neuromodulation.The financial report shows that Boston Scientific's neuromodulation sales in the first fiscal quarter of 2022 to the second fiscal quarter of 2023 were $209 million, $239 million, $221 million, $249 million, $234 million, and $244 million, respectively.Compared with the growth rate of 8%-14% in other business units, the growth of the neuromodulation business has been relatively lagging.

In 2016,Boston Scientific Acquires World-Renowned Radiofrequency Ablation Brand Cosman, Enters Peripheral Nerve Modulation Field, Providing Safe and Efficient Minimally Invasive Intervention Solutions for Patients with Peripheral Neuropathy and Autonomic Nervous System-Related Diseases.The product layout mainly focuses on two fields: Spinal Cord Stimulation (SCS) and Deep Brain Stimulation, targeting the treatment of movement disorders and pain management respectively. In addition, the company has developed an indirect decompression system and radiofrequency ablation, forming a neuromodulation product portfolio with existing production lines to provide a more comprehensive solution for clinical diagnosis and treatment.

Cosman Radiofrequency Ablation Treatment Device

Boston Scientific COSMAN Neuro Radiofrequency Ablation is an efficient, controllable, and directional pain treatment device, commonly used for the treatment of neurological disorders, especially for patients suffering from chronic pain, neuropathy, cancer, or other pain-related conditions.The device can precisely control the transfer of thermal energy, specifically targeting the nerve tissue where the source of pain is located. This directional application of thermal energy minimizes the impact on surrounding healthy tissues.

Vercise Genus DBS System

Boston Scientific's Vercise Genus DBS System is used for deep brain stimulation therapy in Parkinson’s patients, helping to improve motor dysfunction and reduce medication usage.Its unique directional electrodes combined with proprietary MICC (Multiple Independent Current Control) technology enable precise modulation of stimulation intensity, range, location, and direction, thereby accurately targeting the desired site for optimal therapeutic outcomes while reducing the likelihood of side effects. This system features a rechargeable pulse generator, Vercise Gevia, which is convenient to charge and does not require frequent recharging, significantly enhancing the patient's experience.The system is also compatible with MRI equipment, which means that patients implanted with this device do not need to have it removed when they require an MRI scan.

Neuromodulation Market

Neuromodulation is an emerging technology used to treat or alleviate neurological disorders, and its applications mainly includeDeep Brain Stimulation (DBS), Spinal Cord Stimulation (SCS), Vagus Nerve Stimulation (VNS), etc.,The treated diseases include a wide range of fields such as neurological injuries, motor dysfunction, chronic pain, spasticity, epilepsy, gastrointestinal and bladder dysfunction, peripheral vascular disease, cardiac ischemia, audiovisual disorders, and psychosomatic diseases (e.g., depression, obsessive-compulsive disorder, Tourette syndrome).

In the past few decades, hundreds of thousands of patients have benefited from neuromodulation, and new applications for this treatment technology continue to be discovered.According to relevant data statistics, in 2020, the global market size of neuromodulation reached 5.8 billion US dollars, and it is expected that by 2025, the global neuromodulation market will grow to 8.8 billion US dollars, with a 5-year increase of 51.7%.

In China, with the growth of the elderly population and the increase in the prevalence of chronic diseases, the market for neuromodulation products is also growing. Data from the "Report on the Development of Pain Medicine in China (2020)" shows that the number of patients with chronic pain in China has exceeded 300 million and is increasing at a rate of 10 to 20 million per year.

In terms of market share,Currently, the seven major international giants: Medtronic, Abbott, Boston Scientific, LivaNova, Nevro, Nuvectra, and NeuroPaceDue to the first-mover advantages in technology and customer base, it has almost monopolized the entire neuromodulation market.

From the perspective of细分领域,Spinal Cord Stimulator (SCS) in NeuromodulationMarketAccounting for the largest proportion, nearly 55% of the total market in 2018;Deep brain stimulators account for 16%, vagus nerve stimulators account for 14%, and other types account for approximately 15%. Among them,The SCS field is dominated by three companies: Medtronic, Abbott, and Boston Scientific.Each occupies approximately one-third of the market share.

MedtronicInceptiv Closed-Loop Rechargeable SCS System

Inceptiv™ Closed-Loop Rechargeable Spinal Cord Stimulator is the first SCS device offered by Medtronic that provides closed-loop functionality.Previously obtained CE certification in August. The highlight of this product is the use of ECAP as the feedback signal for stimulation.Can perceive each person's unique biological signals and adjust stimulation as needed at any time,To keep the treatment in harmony with daily physical activitiesAdjust. Inceptiv canEnough to perceive the human body's neural response to stimuli 50 times per second on a daily basis. When the neural response intensifies, such as when a patient coughs, sneezes, or bends over, inception will automatically reduce the stimulation. When the neural response weakens, the stimulation returns to the preset optimal level.

Abbott Proclaim Plus SCS System

Proclaim Plus Spinal Cord Stimulation (SCS) System builds on Abbott's proprietary BurstDR stimulation therapy, which delivers pulses or bursts of mild electrical energy to alter pain signals as they travel from the spinal cord to the brain. The FlexBurst360 therapy used can cover pain in up to six areas of the trunk and/or limbs and can be adjusted according to the evolution of individual treatment needs.Moreover, the system requires no charging, with a battery life of up to 10 years, and can be used with Abbott's NeuroSphere Virtual Clinic, allowing people to connect with their doctors and receive remote programming adjustments.

It is worth noting that in recent yearsImplantable Spinal Cord Stimulator in ChinaA number of domestically produced enterprises have also emerged, such as SceneRay Medical, PCH Medical, etc.In January 2022, PINS Medical's implantable spinal cord stimulator was approved for registration, marking the first domestically produced implantable spinal cord stimulation device approved in China. In August of the same year, Ruishen An's implantable spinal cord stimulator was approved for marketing.

SCS relieves intractable pain by stimulating spinal cord nerves with pulse currents, blocking pain signals from being transmitted to the brain via the spinal cord. This highly safe "green therapy" has increasingly gained clinical attention in recent years.This time, Boston Scientific's acquisition of Relievant further expands its SCS product portfolio.Its market share will also be further expanded.

So in the future, handHow Will Boston Scientific, the "Only One in the World," Layout and Double Down?Instrument之家 will continue to follow up.

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