Will Vertiflex Boost Boston Scientific & #039;s Pain Portfolio?

Boston Scientific has slowed its M&A pace considerably this year compared to 2018, but that doesn't mean the company won't take advantage of tuck-in opportunities that come its way. Case in point, the company's pending $465 million cash acquisition of Vertiflex, announced on Wednesday. Carlsbad, CA-based Vertiflex is a private company that sells the Superion Indirect Decompression System, a device designed to improve physical function and reduce pain in patients with lumbar spinal stenosis (LSS). The procedure, which is primarily performed by doctors who treat chronic pain patients with therapies including spinal cord stimulation and radiofrequency ablation, is expected to hit $60 million in sales this year. FDA approved the device in 2015 for patients with moderate degenerative LSS. In addition to the $465 million upfront payment, Boston Scientific agreed to additional payments contingent on commercial milestones over the next three years. Mike Matson, a medtech analyst at Needham & Co., said in a note that it was a little surprising to see Boston Scientific enter the spinal surgery market, but he acknowledged that there probably are synergies with its existing pain business and he characterized the deal as a "typical" Boston Scientific transaction in which it acquires an asset that allows the company to go deeper within a disease state/disorder, in this case, chronic pain. "We believe the Superion System allows [Boston Scientific] to move up the chronic ...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Orthopedics Source Type: news