Boston Scientific has agreed to purchase Axonics Inc., a major player in the development of innovative devices for urinary and bowel dysfunction treatments, in a $3.7 billion deal poised to significantly bolster Boston Scientific's urology portfolio.
The deal comes as a response to the growing need for effective treatments for overactive bladder (OAB) and fecal incontinence, conditions that affect nearly 30 million adults aged 40 and older in the United States, with serious implications for their quality of life and mental health.
This move also marks Boston Scientific's entry into the high-growth area of sacral neuromodulation therapy, a minimally invasive treatment for OAB and fecal incontinence. This therapy involves delivering mild electrical pulses to the sacral nerve, thereby improving bladder and bowel control. The company's product portfolio, including the Axonics R20 and F15 Systems, has shown significant improvement in patients' quality of life in clinical studies, with no serious device-related adverse events reported.
The FDA approved Axonics' fourth-generation R20 neurostimulator in January 2023. This device, with a battery life of over 20 years, and other products like the Bulkamid Urethral Bulking System, are poised to expand the treatment options for urinary incontinence.
Boston Scientific anticipates completing the acquisition in the first half of 2024, with Axonics expected to contribute approximately $366 million in net revenue for 2023, a 34% increase from the previous year. The acquisition is projected to be highly accretive to Boston Scientific's Urology business in 2024, with minimal impact on adjusted earnings per share in the same year and greater accretive impact thereafter.
