- Boston Scientific Corporation (NYSE: BSX) has announced that it has entered into a definitive agreement to buy Baylis Medical Company for an upfront payment of $1.75 billion. These are the details.
Boston Scientific Corporation (NYSE: BSX) has announced that it has entered into a definitive agreement to buy Baylis Medical Company for an upfront payment of $1.75 billion, subject to closing adjustments. This acquisition will expand the Boston Scientific electrophysiology and structural heart product portfolios to include the radiofrequency (RF) NRG and VersaCross Transseptal Platforms as well as a family of guidewires, sheaths, and dilators used to support left heart access. And these platforms have advanced transseptal puncture and are clinically proven to enhance safety, efficacy, and efficiency when crossing the atrial septum to deliver therapies in the left side of the heart like atrial fibrillation ablation, left atrial appendage closure (LAAC), and mitral valve interventions. Baylis Medical Company is expected to generate net sales approaching $200 million in 2022, having achieved double-digit year-over-year sales growth during each of the past five years.
Physicians have traditionally relied on a mechanical needle to pass through the septum and access the left side of the heart – which can present safety concerns and placement challenges based on varying patient anatomy. And rather than relying solely on mechanical force, the Baylis Medical Company platforms facilitate predictable and safe transseptal access by using RF energy – a method shown to increase efficiency, and improve the safety and efficacy of transseptal puncture during left heart procedures. The new VersaCross platform further streamlines transseptal crossing procedures and therapy delivery by offering the same benefits while eliminating potential wire and sheath exchanges – which may help mitigate risks during procedures.
Baylis Medical Company had received U.S. Food and Drug Administration (FDA) 510(k) clearance for the NRG platform in 2008 and the technology has since been used in more than one million procedures. And the company received FDA 510(k) clearance for the VersaCross platform in 2020. These platforms are complemented by the company’s family of guidewires, sheaths, and dilators – which are designed for use in left-sided diagnostic, ablation, mitral, and LAAC procedures.
The deal is anticipated to close in the first quarter of 2022, subject to customary closing conditions, and is expected to be approximately one cent accretive to adjusted earnings per share in 2022 and increasingly accretive thereafter.
KEY QUOTES:
“The talented and innovative Baylis Medical Company team, combined with these transseptal platforms, will enhance our efforts to improve procedural efficiencies with physician tools designed to make left atrial access safer and more predictable, with a focus on patient outcomes. A leader in many of the fastest-growing markets in our industry, we believe that Baylis Medical Company will add meaningful revenue, operating income, and new research and development capabilities across multiple Boston Scientific businesses while complementing existing offerings within our electrophysiology and structural heart portfolios.”
— Mike Mahoney, chairman and chief executive officer, Boston Scientific
“As a leading innovator in left heart access solutions, we develop advancements that help physicians deliver critical, high-precision therapies, which raise the standard of care for patients. We look forward to making these life-changing technologies available to more patients across the globe through the significant commercial reach of Boston Scientific.”
— Kris Shah, president, Baylis Medical Company
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