Medical technology firm Boston Scientific has agreed to acquire US-based prostate therapy developer Augmenix in an agreement valued at around $600m.
Augmenix is a privately-held company which has developed and commercialized the SpaceOAR system, a therapy used to reduce common and debilitating side effects that men may experience after receiving prostate cancer radiotherapy.
The deal includes an upfront cash payment of $500m, as well as payment of up to $100m based on achievement of sales-based milestones.
SpaceOAR hydrogel already secured CE mark, as well as approved by the US Food and Drug Administration (FDA). It has been used in more than 30,000 patients across the globe.
In 2008, Augmenix was established based on technology from Incept and employs around 140 people.
Augmenix CEO John Pedersen said: “We are proud of the clinical and commercial outcomes we’ve been able to achieve for SpaceOAR hydrogel thus far, and are excited to drive accelerated adoption leveraging Boston Scientific’s urology and pelvic health expertise.”
The randomized SpaceOAR hydrogel US clinical study showed that patients who secured the hydrogel spacer reported significantly less rectal pain during prostate radiotherapy and had significantly less severe long-term rectal complications, said the company.
A single injection of the SpaceOAR hydrogel has been developed to maintain the space between the rectum and prostate for three months.
Subject to customary closing conditions, the deal is expected to complete early in the fourth quarter of this year.
Boston Scientific executive vice president and MedSurg president Dave Pierce said: “The acquisition furthers our category leadership strategy in urology and the SpaceOAR hydrogel is a crucial addition to our growing prostate health treatment portfolio of products that improve the quality of life and clinical outcomes for men with prostate cancer and benign prostatic hyperplasia.
“The injection of this hydrogel during a minimally-invasive, in-office procedure can reduce the unwanted and unintended side effects of prostate radiation and provide substantial peace of mind for patients and their treating physicians.”
Last month, Boston Scientific agreed to acquire VENITI, a privately-held company in Fremont, California which has developed and commercialized the VICI VENOUS STENT system for treating venous obstructive disease.