Boston Scientific (NYSE:BSX) said today that it acquired Iris transcatheter annuloplasty ring developer Millipede in a deal worth approximately $325 million with the opportunity for an additional $125 million based on a commercial milestone.
Santa Rosa, Calif.-based Millipede makes the Iris transcatheter annuloplasty ring for treating mitral valve regurgitation. Marlborough, Mass.-based Boston Scientific initially invested $90 million into Millipede in January, with an option to acquire the remaining shares in the company for $325 million and an additional $125 million milestone payment.
Boston Scientific said that it decided to pull the trigger on the acquisition based upon Millipede’s completion of a first-in-human clinical study, and said that the purchase will expand its structural heart portfolio.
“We are very satisfied with the early results of our clinical program and are excited to see this technology further leveraged by Boston Scientific to expand the mitral repair solutions for patients around the world,” Millipede co-founder & CEO Randy Lashinski said in a prepared statement.
The Iris system uses a complete annuloplasty ring to reduce the size of a patient’s dilated mitral annulus. The system is designed for use with a transseptal delivery system and can be used as a stand-alone device or with other devices intended for use in patients with severe mitral regurgitation, Boston Scientific said.
“Upon commercialization, we believe the Iris system can meet the needs of a currently underserved patient population that requires physiological, less invasive options to treat functional mitral regurgitation in patients with progressive heart failure. This device is designed to be highly customizable to a specific patient’s mitral anatomy and disease state, and is repositionable and retrievable to promote a high-quality outcome,” Boston Scientific global chief medcial officer Ian Meredith said in a press release.
Boston Scientific said that it expects the deal to be dilutive to its earnings per share for each of the next several years, but added that “all dilutive impact is expected to be absorbed via internal trade-offs,” and that it expects no net adjusted EPS impact. The acquisition is expected to close during the first quarter of next year.
Earlier this week, Boston Scientific inked a number of new lending agreements, including a large credit facility it could use to finance its approximately $4 billion acquisition offer for British medical device maker BTG (LON:BTG).