Boston Scientific (NYSE:BSX) said yesterday that it put $600 million on the table for Augmenix and its SpaceOar device.
The deal for Bedford, Mass.-based Augmenix calls for $500 million in up-front cash and another $100 million pegged to sales-based milestones, Boston said. The SpaceOar hydrogel device, which won CE Mark approval in the European Union in 2010 and 510(k) clearance from the FDA in April 2015 , is designed to separate the prostate from the rectal wall during radiation treatment for prostate cancer. The product is delivered through a small needle as a liquid, which then solidifies into a soft gel that expands the space between the prostate and rectum during radiotherapy. After about three months, the substance begins to liquefy and is absorbed and cleared from the body in the patient’s urine within about six months.
Marlborough, Mass.-based Boston Scientific said SpaceOar sales could hit $50 million this year and near the $90 million mark next year. The deal is slated to close early in the fourth quarter, the company said.
“The acquisition furthers our category leadership strategy in urology and the SpaceOar hydrogel is a crucial addition to our growing prostate health treatment portfolio of products that improve the quality of life and clinical outcomes for men with prostate cancer and benign prostatic hyperplasia,” medsurg president Dave Pierce said in prepared remarks. “The injection of this hydrogel during a minimally-invasive, in-office procedure can reduce the unwanted and unintended side effects of prostate radiation and provide substantial peace of mind for patients and their treating physicians.”
“We are proud of the clinical and commercial outcomes we’ve been able to achieve for SpaceOAR hydrogel thus far, and are excited to drive accelerated adoption leveraging Boston Scientific’s urology and pelvic health expertise,” added Augmenix CEO John Pedersen. “The company also has the additional resources needed to further explore expansion of indication to other organs throughout the body that could benefit from space creation – such as gynecological and pancreatic cancers.”
Boston said it expects the Augmenix to begin adding to its adjusted earnings per share in 2020.
