Boston Scientific Acquires Augmenix for $600 Million to Expand Prostate Cancer Therapy Portfolio with SpaceOAR Hydrogel System

VCBeat (WeChat ID: vcbeat) has learned that on October 16, 2018, local time, Boston Scientific announced the completion of its $600 million acquisition of Augmenix and its core product, the SpaceOAR Hydrogel System. The SpaceOAR Hydrogel System is a treatment designed to reduce side effects in men following radiation therapy for prostate cancer.

Previously, on September 6, 2018, Boston Scientific announced an acquisition agreement with Augmenix, premised on a $500 million upfront cash payment and an additional approximately $100 million payable upon the achievement of specified sales milestones.

Each year, more than 1.1 million men worldwide are diagnosed with prostate cancer, and approximately 400,000 of them will undergo radiation therapy for prostate cancer. One of the most common complications of prostate radiotherapy is radiation-induced rectal injury. Because the rectum is anatomically closest to the prostate, it is most susceptible to exposure to high-dose radiation.

The SpaceOAR Hydrogel System received the European Union CE Mark in 2010 and was cleared by the U.S. Food and Drug Administration (FDA) in 2015. This system is delivered via a small needle, injecting biodegradable SpaceOAR Hydrogel between the rectum and the prostate during radiation therapy for prostate cancer to reduce the radiation dose received by the rectum. The injected hydrogel is absorbed and eliminated by the patient’s body within six months.

Currently, the SpaceOAR hydrogel system has been used in more than 30,000 patients worldwide. It is reported that the product’s sales revenue is expected to reach $50 million in 2018 and could reach $90 million in 2019.

Dave Pierce, Executive Vice President and President of Boston Scientific’s Medical Systems division, stated when announcing the acquisition agreement: “This acquisition further advances our category leadership strategy in urology. SpaceOAR Hydrogel is a significant addition to our growing portfolio of prostate health therapies, improving quality of life and clinical outcomes for patients with prostate cancer and benign prostatic hyperplasia.”

Boston Scientific, founded in 1979 and headquartered in Massachusetts, is a leading innovator in medical solutions dedicated to improving the health of patients worldwide. Boston Scientific’s products and technologies are used to diagnose or treat a wide range of conditions, including those affecting the heart, digestive system, lungs, vasculature, urinary tract, women’s health, and chronic pain.

Augmenix is a medical device company founded in 2008 and headquartered in Bedford, Massachusetts. Its primary business is the development of a space-filling hydrogel for use in radiation oncology and cancer surgery.