Boston Scientific has signed a definitive agreement to purchase US-based NxThera for an upfront payment of $306m, and up to another $100m in potential commercial milestone-based payments over the coming four years.
Currently, Boston Scientific holds a minority stake in NxThera that is estimated to lead to a net upfront of about $240m after closing and milestone payments of up to $85m.
The acquisition is set to add NxThera’s Rezūm system to Boston Scientific’s Urology and Pelvic Health portfolio of treatments for various urological and gynaecological disorders.
NxThera developed and commercialised this minimally invasive therapy in the US and Europe for the treatment of symptoms caused due to benign prostatic hyperplasia (BPH).
In 2015, the US Food and Drug Administration approved the Rezūm system, which also obtained CE-Mark. Since then, the system has been used to treat more than 20,000 patients.
Boston Scientific Urology and Pelvic Health senior vice-president and president Dave Pierce said: “The Rezūm system is an innovative therapy for men with symptomatic BPH that helps patients with a minimally invasive approach while reducing the cost and unwanted side effects that comes with taking maintenance medications.
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“When compared with other minimally invasive BPH therapies, patients treated with the Rezūm system spend less time in the doctor’s office and have longer lasting improvement in their symptoms.”
Subject to customary closing conditions, the firm expects to close the acquisition in the second quarter of this year.
After completion, the Rezūm system is expected to complement Boston Scientific’s range of laser therapy systems, including the Greenlight XPS Laser Therapy system and holmium platforms, for symptomatic BPH treatment.