News | Patient Positioning Radiation Therapy | September 07, 2018

Boston Scientific to Acquire Augmenix Inc.

Acquisition expands portfolio of men's health in-office procedures with SpaceOAR adjunctive therapy for prostate cancer patients

Boston Scientific to Acquire Augmenix Inc.

September 7, 2018 — Boston Scientific has entered into a definitive agreement to acquire Augmenix Inc., a privately-held company which has developed and commercialized the SpaceOAR System to reduce common and debilitating side effects that men may experience after receiving prostate cancer radiotherapy. The transaction consists of an upfront cash payment of $500 million, and up to $100 million for reaching sales-based milestones.

Each year, more than 1.1 million men are diagnosed with prostate cancer worldwide and approximately 400,000 men will undergo prostate radiotherapy.1,2 One of the most common complications of treatment is rectal radiation injury, due to the rectum's proximity to the prostate and the resulting high doses of inadvertent radiation exposure. Prior to radiation therapy, the SpaceOAR hydrogel is injected to create additional space between the rectum and prostate during treatment, thereby reducing rectal radiation dose and associated side effects.

The SpaceOAR hydrogel is CE Marked, cleared by the U.S. Food and Drug Administration (FDA) and has been used in more than 30,000 patients worldwide. As a result of commercial adoption, expanded U.S. reimbursement and a total addressable market valued at $750 million, product sales are estimated to reach $50 million in 2018 and approach $90 million in 2019.

Clinical trials in Europe and the U.S. have demonstrated that the space created by the hydrogel significantly reduces the amount of radiation delivered to the rectum. Additionally, the randomized SpaceOAR hydrogel U.S. clinical trial demonstrated that patients who received the hydrogel spacer reported significantly less rectal pain during prostate radiotherapy. They also had significantly less severe long-term rectal complications, including zero incidence of grade 2 rectal toxicity versus a 5.7 percent rate experienced by patients without the spacer.

A single injection of the SpaceOAR hydrogel is designed to maintain the space between the rectum and prostate for three months – within the duration of a standard radiation treatment schedule. The absorbable hydrogel is gradually reabsorbed by the body within six months of injection.

The transaction is expected to be immaterial to adjusted earnings per share in 2018 and 2019, accretive in 2020 and increasingly accretive thereafter. On a GAAP basis, the transaction is expected to be less accretive, or more dilutive as the case may be, due to amortization expense and acquisition-related net charges. The acquisition is projected to close early in the fourth quarter of 2018, subject to customary closing conditions.

Augmenix, founded in 2008 based on technology from Incept LLC, is based in Bedford, Mass., and has approximately 140 employees.

For more information: www.bostonscientific.com, www.augmenix.com

References

1. Ferlay JSI, et al.GLOBOCAN 2012: Estimated cancer incidence and mortality worldwide in 2012 v1.0. International Agency for Research on Cancer, World Health Organization. Cancer Base No. 11; 2013.

2. Data on file. Boston Scientific. August 2018.  

Related Content

Merit Medical Completes Acquisition of Cianna Medical
News | Women's Health | November 14, 2018
Disposable device manufacturer Merit Medical Systems Inc. announced the closing of a definitive merger agreement to...
Videos | ASTRO | November 08, 2018
ITN Editor Dave Fornell took a tour of some of the most innovative technologies on display on the expo floor at the 
The Fujifilm FCT Embrace CT System displayed for the first time at ASTRO 2018.
360 Photos | 360 View Photos | November 07, 2018
Fujifilm's first FDA-cleared compu...
This is the Siemens Magnetom Sola RT edition 1.5T MRI system optimized for radiation therapy displayed for the first time since gaining FDA clearance in 2018. It was displayed at the American Society for Radiotherapy and Oncology (ASTRO) 2018 annual meeting. Read more about this system at ASTRO 2018. #ASTRO18 #ASTRO2018
360 Photos | 360 View Photos | November 07, 2018
This is the Siemens Magnetom Sola RT edition 1.5T MRI system optimized for...
GE Healthcare Discovery RF Gen 2 system displayed at ASTRO 2018. It is a dedicated computed tomography (CT) scanner for radiation oncology
360 Photos | 360 View Photos | November 07, 2018
This is the GE Healthcare Discovery RF Gen 2 system displayed at the ...
Proton Therapy for Pediatric Brain Tumors Has Favorable Cognitive Outcomes
News | Proton Therapy | November 06, 2018
Proton therapy treatment for pediatric brain tumor patients is associated with better neurocognitive outcomes compared...
Videos | Radiation Oncology | November 06, 2018
Genomics can be used to assess a patient's radiosensitivity, which can be used to increase or decrease the radiation
150-Year-Old Drug Might Improve Radiation Therapy for Cancer
News | Radiation Therapy | November 02, 2018
November 2, 2018 — A drug first identified 150 years ago and used as a smooth-muscle relaxant might make tumors more