Bloomberg reports that the U.S. Federal Trade Commission (FTC) may look into the $3.7 billion acquisition of Axonics (Nasdaq:AXNX) by Boston Scientific
(NYSE: BSX)
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A new Axonics regulatory filing with the SEC discloses that the companies refiled their Hart Scott Rodino (HSR) Act notification to the FTC on March 4 — a move that companies sometimes employ to give the agency more time to review the transaction without the issuing of a second request.
In January, Boston Scientific announced its plans to buy Axonics and its neuromodulation and hydrogel technologies. The companies said at the time that they expected the deal to close in the first half of this year.
Irvine, California-based Axonics develops neuromodulation systems for treating urinary and bowel dysfunction. The technology delivers mild electrical pulses to the sacral nerve, restoring communication between the brain and the bladder. The company also offers the Bulkamid urethral bulking agent for stress urinary incontinence symptoms.
According to the report, the scrutiny may arrive due to the companies’ shares of the urinary incontinence market. Bloomberg Intelligence Analyst Jennifer Rie claimed in the report that Boston Scientific’s leading vaginal mesh and Axonics’ Bulkamid could be the source of the FTC’s interest. The analyst says that Boston Scientific owning the market’s top mesh and bulking agent could cause antitrust concerns.
Bloomberg states that the acquisition agreement requires Boston Scientific to pay Axonics a $140 million termination fee if the deal fails to go through due to antitrust regulators intervening. The report says antitrust authorities received a notification for the deal on Jan. 30. According to Bloomberg, neither company has yet disclosed if the FTC expanded its review into a deeper investigation. The outlet says Boston Scientific didn’t respond to its request for comment on the matter.
This marks another recent speed bump for Axonics, which remains embroiled in an IP spat with medtech giant Medtronic. Just last week, Medtronic filed a complaint to the U.S. International Trade Commission (ITC) to block the sales of certain Axonics devices.
