Cardiovascular-focused Boston Scientific ($BSX) is moving deeper into oncology and expanding its vascular offerings with the purchase of the interventional radiology portfolio of CeloNova BioSciences. The deal with the San Antonio, TX-based startup involves a $70 million upfront payment with additional undisclosed regulatory and sales milestones.
The acquisition includes a trio of microsphere drug products, one to treat liver cancer and two to treat tumor-related vascular issues including hypervascular tumors, arteriovenous malformations and hepatoma. All of them are regulated along a device pathway.
|Embozene TANDEM Drug-Elutable Microspheres--Courtesy of CeloNova|
Microspheres are tiny, spherical particles loaded with chemotherapy agents that are used by radiologists to slow or stop the blood supply to a growth or tumor. CeloNova's Embozene Tandem drug-eluting microspheres to treat liver cancer was launched in Europe in 2012 but isn't available in the U.S. Liver cancer is one of the leading causes of cancer deaths in China as well as some other Asian countries.
"As we continue to build our interventional oncology business, we expect that the team and technologies included in this acquisition will fuel growth in solutions to treat challenging diseases such as liver cancer, particularly in emerging markets," Jeff Mirviss, SVP and president of Peripheral Interventions at Boston Scientific, said in a statement. "These technologies offer tremendous promise to improve the quality of care by reducing both the cost and side-effects associated with traditional treatments."
The two vasculature products, Oncozene and Embozene microspheres, are FDA cleared for the embolization of arteriovenous malformations and hypervascular tumors; the former will start a clinical trial loaded with doxorubicin this quarter.
Boston Scientific already has a couple of products, including a pancreatic stent to relieve malignant biliary obstruction during chemotherapy, which can be used structurally to help treat various cancers, but it doesn't have any cancer radiology treatment offerings of its own.
The deal is expected to close by year end. It will have an immaterial impact on adjusted EPS in 2016 and is expected to be accretive thereafter.
"We are confident that the significant clinical scale and commercial reach of Boston Scientific will help expand the value of these innovative technologies, bringing the benefits of these therapies to more patients around the world," summed up CeloNova President and CEO Martin Landon. The startup will retain and move forward with products including its Cobra PzF Coronary Stent System, which is in an ongoing global, pivotal trial.
- here is the deal announcement