Medical technology firm Boston Scientific has agreed to acquire US-based privately-held firm NxThera in a transaction worth $406m.
As per the terms of the deal, Boston Scientific will pay $306m in cash to NxThera, as well as up to an additional $100m in potential commercial milestone payments over the next four years.
Boston Scientific already made a minority investment in NxThera, which is expected to help the company to make a net upfront payment of about $240m after closing and milestone payments of up to $85m.
Based in Maple Grove of Minnesota, NxThera developed and commercialized minimally invasive therapy, Rezum system, to treat benign prostatic hyperplasia (BPH) in the US and Europe.
BPH is an enlargement of the prostate, which is said to affect 110 million men across the world.
In 2015, the US Food and Drug Administration approved the Rezum system. Over 20,000 patients have been treated with the Rezum system, which has CE mark.
Physician can apply the Rezum system without general anesthesia. The system uses water vapor to remove excess prostate tissue and facilitate blockage to flow, helping to reduce BPH-related symptoms.
According to Boston Scientific, an additional clinical data from a randomized controlled trial showed that patients treated with the Rezum system had a 51% reduction in their symptoms at 24 months post-treatment and maintained a 50% reduction in BPH symptoms at three years post-treatment.
Subject to customary closing conditions, the deal is expected to complete in the second quarter of this year.
Boston Scientific urology and pelvic health president and senior vice president Dave Pierce said: "The Rezum system is an innovative therapy for men with symptomatic BPH that helps patients with a minimally invasive approach while reducing the cost and unwanted side effects that comes with taking maintenance medications.
"When compared with other minimally invasive BPH therapies, patients treated with the Rezum system spend less time in the doctor's office and have longer lasting improvement in their symptoms."
Image: Boston Scientific's Corporate Headquarters in Marlborough, Massachusetts. Photo: courtesy of Boston Scientific Corporation.