By Jof Enriquez,
Follow me on Twitter @jofenriq
Boston Scientific recently reached an agreement to acquire Xlumena, a manufacturer of minimally invasive devices for endoscopic ultrasound (EUS) guided transluminal drainage of targeted areas within the gastrointestinal tract.
Under the terms of the recently-closed deal, Boston Scientific will pay an upfront payment of $62.5 million for Xlumena, according to a press release. The agreement also calls for an additional payment of $12.5 million by Boston Scientific contingent upon FDA clearance of Xlumena’s HOT AXIOS device. Additional sales-based milestones based on sales achieved through 2018 are also included in the agreement.
Boston Scientific said it expects the net impact of the agreement on adjusted earnings per share will be immaterial for years 2015 and 2016, and break-even to accretive thereafter.
The next-generation HOT AXIOS Stent and Delivery System incorporates cautery into the delivery of the FDA-approved AXIOS stent, which was the first stent designed for endoscopic ultrasound-guided transluminal drainage of symptomatic pancreatic pseudocysts.
“We believe the acquisition of Xlumena and their minimally-invasive products combined with the Boston Scientific broad product portfolio demonstrates our commitment to advancing the field of interventional EUS therapeutics,” David Pierce, SVP and president – endoscopy, Boston Scientific, said in the release. “Our combined technologies enable physicians to diagnose and treat diseases of the pancreatico-biliary system using less invasive procedures. We are very pleased to be able to accelerate the global reach of the AXIOS stent and to be at the forefront of this fast growing segment.”
With the acquisition of Xlumena, Boston Scientific believes it strengthens its bid to become a market leader in the EUS segment by coupling its Expect family of fine needle aspiration (FNA) needles with the leader in therapeutic EUS.
“We are proud to see our technology evolve in conjunction with Boston Scientific’s portfolio and provide patients a holistic and minimally invasive solution,” Greg Patterson, president and CEO of Xlumena, said in the release.
Xlumena’s AXIOS pancreatic drainage stents last year was reassigned from Class III to the less-stringent class II classification by the FDA, after an agency review found that Class II special controls would be enough to ensure the devices’ safety.
The HOT AXIOS and AXIOS devices for the gallbladder and bile duct have received CE mark designation in Europe. They have yet to be approved in the United States.
The deal to purchase Xlumena comes roughly a month after Boston Scientific agreed to buy the urology portfolio of American Medical Systems (AMS), a subsidiary of Endo International. The agreement calls for $1.6 billion in cash plus $50 million in milestones, and will close sometime during the third quarter this year.