Boston Scientific lays out $406m for NxThera

Boston Scientific (NYSE:BSX) said today that it laid out a $406 million deal for NxThera and its Rezūm benign prostatic hyperplasia device, which uses steam to ablate excess prostate tissue.

The deal calls for $306 million in up-front cash from Marlborough, Mass.-based Boston Scientific, with another $100 million in potential milestones over the next four years. Boston, which in December 2015 led a $40 million funding round for NxThera, said the existing investment means it will have to put $240 million down and another $85 million on the table in milestones. NxThera is based in Maple Grove, Minn. When Boston Scientific paid $1.6 billion to Endo (NSDQ:ENDP) for the urology portfolio Endo had acquired from American Medical Systems, it also inherited an earlier investment in NxThera by AMS.

In January NxThera touted three-year results from a 197-patient trial that showed clinically significant and durable improvement in symptomatic relief, with no latent adverse events, no de novo erectile disfunction and a 4.4% re-treatment rate. Rezūm won CE mark approval in the European Union in 2013 and landed 510(k) clearance from the FDA two years later.

“The Rezūm system is an innovative therapy for men with symptomatic BPH that helps patients with a minimally invasive approach while reducing the cost and unwanted side effects that comes with taking maintenance medications,” urology & pelvic health president Dave Pierce said in prepared remarks. “When compared with other minimally invasive BPH therapies, patients treated with the Rezūm system spend less time in the doctor’s office and have longer lasting improvement in their symptoms.”

“We are excited to announce this agreement with Boston Scientific,” added NxThera president & CEO Bob Paulson. “Their strong leadership in the field of urology will help drive the Rezūm system forward and ensure that more men have access to this treatment option.”

Boston said it expects the buyout, forecast to close during the second quarter, to be immaterial to adjusted earnings per share until the end of 2020.

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