Boston Scientific Acquires Vertiflex for $465 Million to Expand Chronic Pain Portfolio

VCBeat (WeChat ID: vcbeat) has learned that on May 10, 2019, medical device company Boston Scientific announced the acquisition of spinal implant developer Vertiflex for $465 million. The transaction is expected to close by the end of the second quarter of 2019. Under the terms of the agreement, Boston Scientific will pay Vertiflex $465 million in upfront cash, plus additional payments contingent upon the achievement of commercial milestones over the next three years.

Boston Scientific was founded in Massachusetts, USA, in 1979 and listed on the New York Stock Exchange in 1992. It is one of the world's leading medical device companies. The company's products and technologies are primarily used for the diagnosis and treatment of various diseases, including those affecting the heart, digestive system, lungs, urinary system, and chronic pain.

Vertiflex, established in 2005 and headquartered in California, USA, is a spinal implant development company. The company is dedicated to the research and development of minimally invasive spinal surgical devices. Its proprietary lumbar decompression technology offers a novel approach for treating spinal stenosis, providing an alternative to conservative treatments and traditional spinal surgery.

Vertiflex has developed a spinal decompression system called the Superion System, a minimally invasive spinal implant designed to improve physical function and alleviate pain in patients with lumbar spinal stenosis. The device preserves spinal stability and provides safe, long-lasting pain relief.

The Superion System received FDA approval for market launch in May 2015, indicated for patients with moderate degenerative lumbar spinal stenosis who have not responded positively to first-line treatments such as oral analgesics and steroid injections. Recently published data show that five years after using the device, the proportion of patients requiring opioid analgesics decreased by 85%. Sales of the device are projected to reach $60 million in 2019.

In the United States, up to 6 million people suffer from lumbar spinal stenosis. This common orthopedic condition exerts pressure on the spinal cord, causing pain, numbness, muscle weakness, or loss of bladder and bowel function. The disease typically onset after middle age, is more prevalent in men than in women, and its primary symptoms include lumbosacral pain and intermittent claudication.

Maulik Nanavaty, President of Boston Scientific, stated, “The acquisition of Vertiflex will expand the company’s pain management portfolio and further advance its leadership strategy. By integrating the differentiated Superion System with our leading spinal cord stimulation and radiofrequency ablation technologies, we can provide physicians with a comprehensive suite of solutions to help manage patients suffering from chronic pain.”

It is reported that in recent years, Boston Scientific has been committed to achieving corporate growth through acquisitions. In October 2018, the company acquired Augmenix and its SpaceOAR Hydrogel system, which is designed to reduce side effects associated with common radiation therapy for prostate cancer. In November 2018, the company acquired British medical device manufacturer BTG for $4.24 billion to strengthen its interventional medicine portfolio. In December 2018, the company acquired Millipede, a developer of IRIS transcatheter annuloplasty technology, for approximately $325 million.

(Compiled by Jiao Yanli)