Boston Scientific signs agreement to acquire Relievant Medsystems

Boston Scientific has entered into a definitive agreement to acquire Relievant Medsystems, a privately held medical technology company that has developed and commercialized the Intracept Intraosseous Nerve Ablation System to treat vertebrogenic pain, a form of chronic low back pain. The transaction includes an upfront cash payment of $850M and undisclosed additional contingent payments based on sales performance over the next three years. The Intracept system is a minimally invasive, implant-free outpatient procedure. The therapy uses targeted radiofrequency energy to stop the basivertebral nerve from transmitting pain signals to the brain and is designed to improve function and provide long-term relief. Boston Scientific expects to close the transaction in the first half of 2024, subject to satisfaction of customary closing conditions. Relievant is expected to generate sales in excess of $70M in 2023 and to deliver year-over-year growth in excess of 50% in 2024. On an adjusted basis, the transaction is expected to be immaterial to adjusted EPS in 2024, slightly accretive in 2025, and increasingly accretive thereafter. On a GAAP basis, the transaction is expected to be more dilutive due to amortization expense and acquisition-related charges.