January 2024 issue, BioElectRx Business Report
January 31, 2024 | The bioelectronic medicine market for treating bowel and bladder disorders underwent a significant transformation earlier this month with the news of the largest M&A deal in the industry’s history. On January 8, Axonics, Inc. announced that it has entered into a definitive agreement to be acquired by Boston Scientific Corp. for $71 in cash per share, representing an equity value of approximately $3.7 billion.
Axonics brings a complementary product portfolio to the Boston Scientific urology business. Axonics has pioneered and introduced significant enhancements to sacral neuromodulation therapy for bladder and bowel dysfunction and urethral bulking for women with stress urinary incontinence, both of which are among the fastest growing segments in urology.
“Since its founding 10 years ago, Axonics has focused on developing best-in-class solutions for people with incontinence, providing clinicians and their patients with strong clinical support, and raising public awareness of our advanced therapies,” said Raymond Cohen, CEO of Axonics. “The success of Axonics is a testament to our mission-driven employees and their commitment to innovation, quality, and teamwork. Our team is looking forward to the global impact we can make as part of Boston Scientific as we endeavor to bring these life-changing therapies to more patients than ever before.”
The Axonics product portfolio includes the Axonics R20TM and the Axonics F15TM systems used to deliver sacral neuromodulation therapy. In clinical studies, Axonics Therapy has demonstrated meaningful improvement in patients’ quality of life in follow-up out to two years, with no serious device-related adverse events reported.
“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, urology, Boston Scientific. “This acquisition also enables our entry into sacral neuromodulation, a high-growth adjacency with opportunities to expand access to care for patients.”
The boards of directors of Axonics and Boston Scientific unanimously approved the transaction, which is expected to close in the first half of 2024 after satisfaction of customary closing conditions, including approval of Axonics’ stockholders and receipt of required regulatory approvals. Upon completion of the transaction, Axonics will become a wholly owned subsidiary of Boston Scientific.
Axonics expects to deliver net revenue of approximately $366 million in 2023, representing 34% growth over the prior fiscal year. Axonics’ revenue growth profile is anticipated to be highly accretive to the Boston Scientific urology business in 2024. The impact to Boston Scientific adjusted earnings per share is expected to be immaterial in 2024 and accretive thereafter.
The acquisition pits Boston Scientific squarely against Medtronic in the sacral nerve stimulation market. The two players already compete head-to-head in SCS and DBS. The move could put pressure on a third player, Abbott, to enter the SNS market, given their status in both SCS and DBS. Among the future candidates for acquisition are implanted device manufacturers Neuspera Inc. and Valencia Technologies.
