Boston Scientific in $3.7bn deal for Axonics

March 2024 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

March 2024 Issue

In a deal that expands its urology portfolio with differentiated technologies to treat urinary and bowel dysfunction, medical device solutions provider Boston Scientific Corporation is to acquire publicly traded medical technology company Axonics, Inc. for $3.7bn.

Under the terms of the definitive agreement, Boston Scientific will pay $71 in cash per share. This represents a 23.3 percent premium to Axonics’ last close. Axonics expects to deliver net revenue of approximately $366m in 2023 – 34 percent growth over the prior fiscal year.

The impact to Boston Scientific’s adjusted earnings per share is expected to be immaterial in 2024 and accretive thereafter. In addition, the impact to generally accepted accounting principles earnings per share is expected to be less accretive, or more dilutive, due to amortisation expense and acquisition-related net charges.

Founded in 2013 and headquartered in Irvine, California, Axionics is dedicated to improving the quality of life of people suffering from bladder and bowel dysfunction, conditions that impact the lives of tens of millions of adults globally.

In the US, it is estimated that nearly 30 million adults aged 40 and older have bothersome symptoms of overactive bladder and 19 million adults have faecal incontinence. These conditions can have a significant impact on quality of life, mental health, sleep, productivity and social activities.

Axionics’ products include the Axonics sacral neuromodulation system (SNM) designed to treat overactive bladder and faecal incontinence and the Bulkamid hydrogel designed to treat women with stress urinary incontinence. In January 2023, Axonics received US Food and Drug Administration (FDA) approval for its fourth-generation Axonics R20 neurostimulator, a rechargeable SNM device with a battery life of 20 or more years.

“We are excited to add Axonics technologies to the Boston Scientific portfolio, a combination that we expect will further strengthen our ability to serve urologists who are treating patients living with these often-chronic conditions,” said Meghan Scanlon, senior vice president and president of urology at Boston Scientific. “This acquisition also enables our entry into sacral neuromodulation, a high-growth adjacency with opportunities to expand access to care for patients.”

Across 100-plus countries, Boston Scientific works collaboratively to solve healthcare’s toughest problems by developing solutions that matter most to those suffering from debilitating and life threatening conditions and the healthcare professionals who provide their care.

Moreover, by serving in local communities around the world, Axionics helps providers deliver care more effectively by reducing costs, increasing efficiencies and expanding access to care in order to help more people in more places live longer, healthier lives.

“We go beyond our mission of transforming patient lives by investing in the future and the well-being of our employees and our planet,” continued Ms Scanlon. “Our commitment to sustainability is evident in our Newsweek ranking as the 16th greenest company in the US. We also strive to foster a diverse and inclusive work environment and provide opportunities for our 38,000-plus employees.”

The transaction is expected to be completed in the first half of 2024, subject to customary closing conditions.

Fraser Tennant