Boston Scientific announces acquisition of Axonics for $3.7 billion

Axonics acquisition: Boston Scientific Corporation revealed on Monday its agreement to acquire Axonics Inc for a sum of $3.7 billion, thereby securing assets in devices designed to enhance bladder functionality.

This acquisition signifies Boston Scientific's foray into sacral neuromodulation, a minimally invasive medical procedure utilised for addressing overactive bladder and faecal incontinence conditions. The transaction underscores Boston Scientific's ongoing efforts to augment its urology division. Under the terms of the agreement, Boston Scientific, renowned for its production of pacemakers, stents, and catheters, will extend a cash offer of $71 per share to Axonics shareholders, constituting a 23.3 per cent premium over Axonics' most recent closing price.

Following the announcement, Axonics shares experienced a surge of 22 per cent in premarket trading activity.

Background 

Axonics Inc, headquartered in California, offers products like Axonics R20 and Axonics F15, which facilitate sacral neuromodulation therapy. This therapy involves the delivery of mild electrical impulses to the sacral nerve, thereby restoring functional communication between the brain and the bladder. Additionally, Axonics' product portfolio encompasses Bulkamid, a minimally invasive therapeutic solution catering to urinary incontinence issues in women.

The acquisition is slated for finalisation in the first half of 2024. Boston Scientific anticipates that Axonics will contribute approximately $366 million in net revenue for 2023. Moreover, the corporation projects the integration of Axonics to bolster its urology business performance by the year 2024.

Boston Scientific, headquartered in Massachusetts, has demonstrated a pattern of strategic acquisitions in recent times. In September, the company finalised an agreement to purchase Relievant Medsystems, a privately held entity, for an upfront cash consideration of $850 million, thereby acquiring access to an FDA-approved therapy for chronic pain management. Prior to this, Boston Scientific acquired Acotec Scientific, a Chinese medical technology firm, for an approximate sum of $523 million.