Boston Scientific to Acquire Axonics for $3.7 Billion, Expanding Urology Portfolio with Neurostimulation Therapies

Boston Scientific has announced a $3.7 billion acquisition of Axonics, a key player in neurostimulation therapies for urinary and fecal incontinence, expanding its urology portfolio. At $71 per share, this deal represents a significant premium over Axonics’ recent stock price.

Axonics, known for its competitive edge against Medtronic, specializes in rechargeable and non-rechargeable sacral implants with long battery lives. The company gained FDA approval for its latest rechargeable device in January 2023. Considering Axonics’ existing cash reserves, the acquisition’s net value is approximately $3.4 billion.

Boston Scientific aims to penetrate the sacral neuromodulation market, a sector with significant growth potential and an estimated market size of $800 million in 2022, expected to reach $1.6 billion by 2028. This move will enable Boston Scientific to compete more effectively against Medtronic, which offers similar neurostimulation therapies.

Additionally, the acquisition includes Axonics’ Bulkamid, a hydrogel-based treatment for female stress urinary incontinence, which Axonics acquired for $200 million in early 2021. Axonics reported a notable revenue increase in 2023, with significant growth in sacral neuromodulation and Bulkamid sales.

The deal is expected to close in the year’s first half, with Axonics and its approximately 800 employees becoming a wholly-owned subsidiary of Boston Scientific. Axonics’ CEO highlighted the company’s significant revenue growth and the successful treatment of around 100,000 incontinence patients globally in 2023. The announcement coincided with the J.P. Morgan Healthcare Conference in San Francisco.

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[Source: Fierce Biotech, January 8th, 2023]