Boston Scientific announced it has entered into a definitive agreement to buy Axonics, a publicly traded medical technology company primarily focused on developing and commercializing differentiated devices to treat urinary and bowel dysfunction. The purchase price is $71 in cash per share, reflecting an equity value of about $3.7 billion and an enterprise value of approximately $3.4 billion.
In the US, it is estimated that nearly 30 million adults ages 40 and older have bothersome symptoms of overactive bladder (OAB), and 19 million adults have fecal incontinence. And these conditions can significantly impact quality of life, mental health, sleep, productivity, and social activities.
Axonics’ product portfolio includes the Axonics R20TM and the Axonics F15TM Systems used to deliver sacral neuromodulation (SNM) therapy. SNM therapy is a minimally invasive procedure used in the treatment of OAB and fecal incontinence. And it works by delivering mild electrical pulses to the sacral nerve to restore communication between the brain and the bladder. In clinical studies, Axonics Therapy demonstrated a meaningful improvement in patients’ quality of life in follow-up out to two years, with no serious device-related adverse events reported.
In January 2023, Axonics received U.S. Food and Drug Administration (FDA) approval for its fourth-generation Axonics R20 neurostimulator, a rechargeable SNM device with a 20 or more years battery life. And the company’s portfolio also includes Bulkamid® Urethral Bulking System for treating female stress urinary incontinence.
Boston Scientific expects to complete the transaction in the first half of this year, subject to customary closing conditions. And Axonics expects to deliver net revenue of approximately $366 million in 2023, representing 34% growth over the prior fiscal year. Axonics’ revenue growth profile is anticipated to be highly accretive to the Boston Scientific Urology business this year. The impact on Boston Scientific’s adjusted earnings per share is expected to be immaterial this year and accretive.
KEY QUOTE:
“We are excited to add Axonics technologies to the Boston Scientific portfolio, a combination that we expect will further strengthen our ability to serve urologists who are treating patients living with these often-chronic conditions. This acquisition also enables our entry into sacral neuromodulation, a high-growth adjacency with opportunities to expand access to care for patients.”
— Meghan Scanlon, senior vice president and president, Urology, Boston Scientific
