Boston Scientific has signed a definitive agreement to acquire medical technology company Relievant Medsystems for an upfront cash payment of $850m.
The transaction also includes undisclosed additional contingent payments based on the performance of sales over the next three years.
Relievant has developed and commercialised the Intracept Intraosseous Nerve Ablation System for the treatment of a type of chronic low back pain called vertebrogenic pain.
Intracept is claimed to be the only US Food and Drug Administration (FDA)-approved system for this pain.
Designed to enhance function and offer long-term relief, the minimally invasive and implant-free outpatient procedure stops the basivertebral nerve from transmitting pain signals to the brain by using targeted radiofrequency energy.
Boston Scientific Neuromodulation president Jim Cassidy said: “We anticipate this novel, clinically-backed technology can support our category leadership strategy while expanding access to care for individuals who need personalised treatment.
“Upon close, we look forward to working with the Relievant team to explore opportunities to bring this high-growth therapy to a wider population of people living with chronic low back pain.”
Subject to satisfaction of customary closing conditions, the transaction is anticipated to be completed in the first half of next year.
Relievant president and CEO Tyler Binney said: “Together with Boston Scientific, we can accelerate our journey to provide life-changing relief to patients by transforming the diagnosis and treatment of vertebrogenic pain.”
In August this year, Boston Scientific secured expanded FDA clearance for its VISUAL Ice system.