Boston Scientific announced that it would purchase Vessix Vascular, a medical device manufacturer based in Laguna Hills, California. Boston Scientific has agreed to purchase the company for as much as $425 million. This will put Boston Scientific in the competitive high blood pressure treatment market.
According to a press release, Boston Scientific will structure the purchase over a series of payments. The company will make an upfront payment of $125 million before the end of the year. In addition, Boston Scientific will make milestone payments based on the successful completion of certain actionable goals. These milestones are set between 2013 and 2017 and may be worth $300 million. If Vessix is able to achieve success in its sales and clinical trials, it will receive full payments from Boston Scientific.
Vessix concentrates in renal denervation products. These are medical devices that selectively disable nerves in the kidney. By disabling certain nerves, it’s possible to significantly reduce high blood pressure. Vessix has received CE Mark approval in Europe and approval in Australia.
CEO Mark Mahoney stated in prepared remarks, "Hypertension is a major global health-care challenge, affecting more than one billion people world-wide." He further stated that their newly-acquired technology "represents a potential breakthrough therapy for the treatment of uncontrolled hypertension and is an important part of the Boston Scientific growth strategy.”