It’s unsurprising to hear of Boston Scientific Corporation’s acquisition of renal denervation device company Vessix Vascular. Boston has been mooting its entry into this space for some time and Vessix was always a likely target. The acquisition is worth an upfront $125M with deferred milestone payments over the next five years making the deal worth a potential $425M.
We’ve covered renal denervation extensively on our pages, but if you want a refresher course, try here. Suffice it to say it’s a new therapy area that looks like it’s in the goldilocks zone of being high unmet demand and technologically do-able.
Medlatest has covered and indeed admired Vessix Vascular’s V2 Renal Denervation System™ for a while now. It’s one of about half a dozen offerings, none of which is available in the U.S. yet. V2 has has received CE Mark in Europe and TGA approval in Australia and the company has initiated the REDUCE-HTN post-market surveillance study in anticipation of a full launch of the product in CE Mark countries in 2013.
Boston Scientific will attach the Vessix Vascular business to its Peripheral Interventions business, adding to its portfolio which includes devices to treat vascular system blockages in areas such as the carotid and renal arteries and the lower extremities.
This acquisition puts the company exactly where it needs to be, up alongside St.Jude, Medtronic and Covidien as they battle for a slice of what is likely to be a massive market.
for Boston Scientific
“Hypertension is a major global healthcare challenge, affecting more than one billion people worldwide,” said Mike Mahoney, president and chief executive officer at Boston Scientific. “Renal denervation represents a potential breakthrough therapy for the treatment of uncontrolled hypertension and is an important part of the Boston Scientific growth strategy. The acquisition of Vessix Vascular adds a second generation, highly differentiated technology to our hypertension strategy while accelerating our entry into what we expect to be a multi-billion dollar market by 2020.”
“We expect that hypertension therapies will be a key growth driver for Boston Scientific going forward,” said Jeff Mirviss, president of the Peripheral Interventions business for Boston Scientific. “We believe the Vessix Vascular Renal Denervation System will position us for leadership in this important market. We look forward to offering this technology to help patients better control their blood pressure, which also may lead to reduced healthcare costs associated with uncontrolled hypertension.”
“Physician response to the V2 Renal Denervation System has been outstanding,” said Raymond W. Cohen, chief executive officer at Vessix Vascular. “We are confident that the combination of the Vessix Vascular renal denervation technology with the Boston Scientific broad global clinical and commercial scale will result in a new standard for the treatment of uncontrolled hypertension.”
“The Vessix System offers the potential for a significant step forward in the treatment of uncontrolled hypertension,” said Prof. Horst Sievert, M.D., Ph.D., Director of the CardioVascular Center Frankfurt, Sankt Katharinen Hospital, in Frankfurt, Germany. “In my experience, the system offers ease of use, faster treatment times with decreased patient discomfort and an intuitive approach to renal denervation that leverages the expertise of the interventionalist with balloon catheter technology.”
Source: Boston Scientific Corporation, PR Newswire