Boston Scientific enters spine with the Vertiflex acquisition for $465M
The deal, announced this morning and expected to close late in the second quarter of 2019, includes commercial milestones spaced out over three years. Carlsbad, Calif.-based Vertiflex makes the Superion decompression device for treating lumbar spinal stenosis, which won pre-market approval from the FDA in May 2015. Boston Scientific said it plans to integrate Vertiflex, which employs about 100 people, into its pain management portfolio. Superion sales are slated to hit $60 million this year, Boston said.
“The acquisition of Vertiflex and the Superion system will further our category leadership strategy by expanding the breadth of our pain management product offerings,” neuromodulation president Maulik Nanavaty said in prepared remarks. “The addition of this differentiated technology, along with our leading spinal cord stimulation and radiofrequency ablation technologies, will provide physicians with the widest variety of solutions available to manage the growing number of patients suffering from chronic pain.”
“Five-year clinical data and real-world experience with the Superion system demonstrate that this minimally invasive and reversible procedure – done without destabilizing the spine – can offer patients safe, long-term pain relief with a relatively rapid recovery time,” added Vertiflex president & CEO Earl Fender. “We are proud of the clinical and commercial successes we’ve been able to achieve and look forward to continued adoption of the therapy with the global resources and clinical expertise of the Boston Scientific pain management franchise.”
Marlborough, Mass.-based Boston Scientific said it doesn’t expect the Vertiflex acquisition to affect adjusted earnings per share until after 2020.