HQ Team
September 20, 2023: Boston Scientific has acquired privately-held Relievant Medsystems, for more than $850 million to expand into the chronic low back pain segment.
Relievant has developed and commercialised the Intracept procedure to treat vertebrogenic pain, a form of chronic low back pain.
The deal has an upfront cash payment of $850 million and undisclosed additional contingent payments based on sales performance over the next three years, according to a Boston Scientific Corporation statement.
Boston Scientific, a Delaware, US-based biomedical engineering firm and manufacturer of medical devices used in interventional medical specialities, expects to close the transaction in the first half of 2024.
Expected sales of $70m in 2023
Relievant is expected to generate sales in excess of $70 million in 2023 and to deliver year-over-year growth in excess of 50% in 2024
Relievant’s therapy uses targeted radio-frequency energy to stop the basivertebral nerve from transmitting pain signals to the brain and is designed to improve function and provide long-term relief.
In the US, there is an estimated population of about 5.3 million people living with vertebrogenic pain.
″We anticipate this novel, clinically-backed technology can support our category leadership strategy while expanding access to care for individuals who need personalized treatment,″ said Jim Cassidy, president, Neuromodulation, Boston Scientific.
“Upon close, we look forward to working with the Relievant team to explore opportunities to bring this high-growth therapy to a wider population of people living with chronic lower back pain.″
Slightly accretive EPS in 2025
On an adjusted basis, the transaction is expected to be immaterial to adjusted earnings per share in 2024, slightly accretive in 2025, and increasingly accretive thereafter, according to Boston Scientific.
On a GAAP basis, the transaction is expected to be more dilutive due to amortization expense and acquisition-related charges.
About 619 million people live with lower back pain it is the leading cause of disability worldwide, according to the WHO.
Low back pain can be a dull ache or sharp pain. It can also cause pain to radiate into other areas of the body, especially the legs. It can restrict a person’s movement, which can affect their work, school and community engagement.
It can also cause problems with sleep, low mood and distress. The pain can be acute (lasting under 6 weeks), sub-acute (6–12 weeks) or chronic (over 12 weeks).
