World Markets
BSX

Boston Scientific Exercises Option To Buy Millipede - Quick Facts

(RTTNews.com) - Boston Scientific Corp. ( BSX ) said Thursday that it exercised its option to acquire the remaining shares of Millipede Inc., a privately-held company in Santa Rosa, California, upon its recent successful completion of a first-in-human clinical study.

The company noted that the acquisition will expand the Boston Scientific Structural Heart portfolio to include the IRIS Transcatheter Annuloplasty Ring System which is in development for the treatment of patients with severe mitral regurgitation or MR, who are not able to tolerate open-heart surgery.

The deal is anticipated to close in the first quarter of 2019. Boston Scientific initially entered into an investment and acquisition option agreement with Millipede in January 2018.

Boston Scientific acquired $90 million in existing and newly-issued Millipede shares, with the option to acquire the company's remaining shares for $325 million at closing, with a $125 million payment becoming available upon achievement of a commercial milestone.

Boston Scientific noted that the quickly expanding transcatheter mitral repair and replacement market is estimated to reach $1 billion by 2021, with the majority comprised of repair procedures.

The IRIS system uses a complete annuloplasty ring, considered the gold-standard surgical approach, to reduce the size of a dilated mitral annulus. It is delivered via a transcatheter-transseptal delivery system, and can be used as a stand-alone device, or in combination with other technologies in patients with severe MR.

On an adjusted basis, the transaction is expected to be dilutive to earnings per share or EPS for each of the next several years. However, all dilutive impact is expected to be absorbed via internal trade-offs, resulting in no net adjusted earnings per share impact.

On a reported basis, for each of the next several years, the transaction is expected to be more dilutive, due to amortization expense and acquisition-related net charges.

Read the original article on RTTNews (http://www.rttnews.com/2965520/boston-scientific-exercises-option-to-buy-millipede-quick-facts.aspx)

For comments and feedback: contact editorial@rttnews.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BSX

Other Topics

Stocks

RTTNews

Founded in the late 1990s by Andrew Mariathasan in New York, with the goal of covering Wall Street for a new generation of investors, RTTNews has expanded steadily over the years to become a trusted provider of content for a wide array of subjects across several platforms. RTT's Financial Newswire is relied upon by some of the world's largest financial institutions, including banks, brokerages, trading platforms and financial exchanges.

Learn More