Boston Scientific (NYSE:BSX) said yesterday that it closed the $270 million buyout of Claret Medical and its Sentinel device, including a $50 million earnout pegged to a reimbursement win that just came in.
Claret’s Sentinel device is designed to trap and remove debris dislodged during transcatheter aortic valve replacements to prevent stroke and other neurological damage. The deal, announced July 20, originally called for an up-front cash payment of $220 million plus the $50 million reimbursement milestone.
That milestone was reached when the Centers for Medicare & Medicaid Services granted a New Technology Add-on Payment for Sentinel, slated to kick in Oct. 1, Marlborough, Mass.-based Boston Scientific said.
“The Sentinel system is an exciting platform technology designed to reduce the risk of procedure-related stroke in TAVR and other left-heart and endovascular procedures, and is an increasingly important consideration for patients and physicians as the TAVR indication expands to treat a younger patient population,” interventional cardiology president Kevin Ballinger said in prepared remarks. “The recent CMS NTAP designation underscores the clinical value of the Sentinel system and will allow for accelerated adoption of this adjunctive therapy amongst structural heart centers.”
After landing CE Mark approval in the European Union in 2014, Santa Rosa, Calif.-based Claret won de novo clearance from the FDA last year for the Sentinel device. The company raised $21 million in an equity round in October 2017.
Boston Scientific has said that the deal isn’t expected to affect its adjusted earnings this year but should add to them next year and beyond.