Boston Scientific announces $600M purchase of Bedford prostate firm
Courtesy | Boston Scientific
Boston Scientific's headquarters are located in Marlborough.
Boston Scientific has announced its largest transaction this year: an acquisition of a Bedford prostate health firm for up to $600 million.
The transaction to purchase Augmenix includes half-a-billion dollars and up to $100 million for reaching sales-based milestones, Marlborough-based Boston Scientific said late Thursday.
Augmenix manufactures and markets the SpaceOAR System, a therapy used to reduce common side effects associated with prostate cancer radiotherapy.
The treatment method uses the company’s SpaceOAR hydrogel, which is injected to create additional space between the rectum and prostate during cancer treatment to reduce side effects.
The system is already approved for sales and medical use in Europe and the U.S., and more than 30,000 patients have received treatment using the device.
With a market valued at $750 million, sales of the device are expected to reach $50 million this year and nearly double to $90 million in 2019.
With the acquisition of Augmenix, Boston Scientific has announced eight acquisitions this year worth more than $2 billion.
This transaction is one of the largest made by the company in recent years, surpassed only by the $1.6 billion purchase of American Medical Systems’ men’s prostate health business in 2015.
The company's stock, trading Thursday for around $36 per share, showed little movement relative to the announcement, but the company's valuation has risen to just below $50 billion from the $35 billion valuation to start the year.
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