Boston Scientific Corporation has revealed in a press release that it has entered into a definitive agreement to acquire privately-held Rhythmia Medical, Inc. The company is a developer of next-generation mapping and navigation solutions for use in cardiac catheter ablations and other electrophysiology procedures, including atrial fibrillation and atrial flutter.
Approximately 15 million people worldwide suffer from some degree of atrial fibrillation, a condition that disrupts the ability of the heart to beat regularly and pump blood efficiently. Catheter ablation of targeted areas of the heart is commonly used to treat many heart rhythm disorders, including atrial flutter and atrial fibrillation. Founded in 2004, Rhythmia Medical is developing a next generation mapping, visualisation and navigation system, specifically for the purpose of delivering accurate tissue ablation.
Once the mapping system is cleared by the U.S. Food and Drug Administration and receives CE Mark approval in Europe, Boston Scientific expects to begin a limited market launch of the system in 2013 and full market launch in 2014.
Under the terms of the agreement Boston Scientific will make an upfront payment of $90 million and up to an additional $175 million in contingent payments based on regulatory, commercial, and sales-based milestones through 2017.
for Boston Scientific
“The acquisition of Rhythmia Medical is a decisive step forward for Boston Scientific in the electrophysiology ablation business, including the high-growth segment of complex ablation,” said Hank Kucheman, chief executive officer of Boston Scientific. “Electrophysiology is a $2.5 billion market and growing at a double-digit pace, representing a key growth opportunity for us. Rhythmia Medical has a strong and impressive team, and its technology is expected to add innovation and breadth to Boston Scientific’s suite of solutions in this strategically important space.”
for Rhythmia Medical
“Rhythmia Medical’s revolutionary mapping technology is expected to significantly enhance physician treatment options and ultimately facilitate and improve what today are long and complicated procedures,” said Doron Harlev, co-founder and co-chief executive officer of Rhythmia Medical. “Our system is expected to become a very promising tool for physicians to treat patients with complex cardiac arrhythmias. We are excited to combine our mapping system with Boston Scientific’s strong catheter platform and commercialization capabilities.”
Source: Boston Scientific Corp., PR Newswire