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Acquisitions: BSX’s Category Leadership in Urology

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Urology and pelvic health market expansion: NxThera

Boston Scientific (BSX) is focused on expanding the presence of its urology and pelvic health business across geographies and therapeutic markets. On April 30, Boston Scientific announced the completion of its acquisition of NxThera. Rezūm was added to Boston Scientific’s portfolio through the acquisition of NxThera and is a minimally invasive therapy used to treat benign prostatic hyperplasia (or BPH).

According to the company’s third-quarter earnings investor presentation, this deal has added 190 basis points to Boston Scientific’s Urology and Pelvic Health segment’s YoY revenue growth in the third quarter. This deal was completed for a potential consideration of $325.0 million, of which $240.0 million was an upfront payment and the remaining $85.0 million was the maximum milestone payment payable by Boston Scientific. However, the consideration estimate excluded the value of the company’s previous equity investment in NxThera.

nVision acquisition

On April 16, Boston Scientific (BSX) announced the completion of the acquisition of nVision for a potential consideration of $275.0 million. According to the company’s third-quarter earnings investor presentation, this deal has added a potential platform for the early detection of ovarian cancer. Although the acquisition of nVision didn’t significantly affect Boston Scientific’s third-quarter revenues, it marks the entry of the company in the women’s health sector.

According to its third-quarter earnings investor presentation, Boston Scientific is involved in a confirmatory study for this platform. Results from this study are expected in the second half of 2019.

Augmenix acquisition

On October 16, Boston Scientific announced the completion of its acquisition of Augmenix for a potential consideration of $600.0 million. According to its third-quarter earnings investor presentation, this deal is expected to contribute $50.0 million in revenues for Boston Scientific in fiscal 2018.

According to the company’s third-quarter earnings conference call, the acquisition of Augmenix has added the SpaceOAR hydrogel to Boston Scientific’s portfolio. This acquisition enabled Boston Scientific to expand its target audience to urologists and radiation oncologists.

In the final article in this series, we’ll discuss the trends for Boston Scientific’s endoscopy business.

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