Boston Scientific acquires deep brain stimulation company Intelect
13 Jan 2011
Boston Scientific Corporation has acquired Intelect Medical,
Inc., a development-stage company located in Boston, USA, that is
developing advanced neuromodulation technologies for deep brain
stimulation (DBS) therapy.
The transaction values Intelect Medical at US$78 million. As a
result of Boston Scientific's existing equity and debt positions in
Intelect Medical, the total cash payment by Boston Scientific was
approximately US$60 million, which was funded with cash on hand.
Boston Scientific says it expects the transaction to have an
immaterial impact on its GAAP and adjusted earnings per share in
each of 2011, 2012 and 2013, and to be accretive starting in 2014.
DBS involves the implantation of a lead into the brain and a
pulse generator into the chest that sends electrical impulses to the
lead. Boston Scientific estimates the current worldwide market for
DBS at $400 million with projections to grow to more than $1.5
billion by 2020.
Intelect Medical is developing the GUIDE DBS programming system,
the first system to enable clinicians to visualize stimulation
fields in the brain and provide more precise targeting of therapy.
This technology — combined with Boston Scientific's Vercise DBS
system — is expected to provide clinicians substantially improved
treatment for their patients. The Vercise DBS System is a
neurostimulation device designed to deliver electrical signals to
specific areas within the brain through individual lead contacts
that allow a more tailored amount of current flow based on patient
Boston Scientific recently announced the first Vercise DBS
System implant as part of its VANTAGE clinical trial to treat
Parkinson's disease. Parkinson's disease is a progressive
neurodegenerative disorder that affects 7 to 10 million people
worldwide, according to the World Health Organization.
"The acquisition of Intelect Medical supports our long-term
strategy of enhancing our product portfolio and gaining market share
in the Neuromodulation space, and it will help us to provide the
most advanced deep brain stimulation technology solutions for
neurologists, neurosurgeons and their patients," said Michael
Onuscheck, Senior Vice President and President, Neuromodulation for
Boston Scientific. "The GUIDE DBS system promises to be a major
advance in deep brain stimulation therapy, especially when used in
conjunction with our Vercise DBS System."
"This acquisition represents additional progress in our strategy
to realign Boston Scientific's portfolio through the execution of
our Priority Growth Initiatives," said Ray Elliott, President and
Chief Executive Officer of Boston Scientific.
"Deep brain stimulation has enormous potential, and it is an
important part of our Neuromodulation business growth plans. We will
continue to pursue additional Priority Growth Initiatives to
strengthen our Company by buying or building products we understand,
to be sold through sales forces we already have."
The Vercise DBS System is an investigational device only and is
not available for sale.