So far this year, Boston Scientific’s M&A strategy has focused on snapping up companies where it already had a foot in the door, in the form of a nicely sized equity stake or a longstanding strategic partnership.
The medtech giant’s latest acquisition continues this trend. Boston Scientific said Tuesday that it will buy up the remaining 84% of Devoro Medical that it doesn’t already own, subsuming the California-based startup’s blood clot removal platform into its existing thrombectomy portfolio.
The deal will see Boston Scientific put down about $269 million up front to acquire Devoro, in which it has been a strategic investor since 2019. Down the line, it’ll pay out up to another $67 million as its new subsidiary hits certain unspecified clinical and regulatory milestones.
Factoring in the 16% stake in Devoro that Boston Scientific already holds, plus debt and other deal-closing adjustments, the transaction’s entire value jumps to about $400 million, split between $320 million up front and up to $80 million in milestone payments. The companies expect the deal to close by the end of this year.
Devoro’s Wolf thrombectomy device comprises two catheters to remove clots from the peripheral arteries and veins. Once the inner catheter has reached a thrombus or embolus, an attached woven sleeve equipped with mechanical conveyor technology and prongs pulls the clot out of the blood vessel and ingests it into the outer guide catheter for removal.
The device is able to remove clots without harming the surrounding vessel or requiring thrombolysis, in which drugs are administered to break down a clot before removal. It received 510(k) clearance (PDF) from the FDA in 2019 but has yet to be commercialized throughout the U.S.
With its purchase of Devoro, Boston Scientific will oversee the commercial launch of the Wolf system, adding it to its current line of thrombectomy offerings. That includes the AngioJet systems for peripheral and coronary thrombectomies and the EKOS endovascular system for ultrasound-assisted, catheter-directed thrombolysis.
“The Wolf platform is a compelling new option for physicians performing thrombectomy procedures, and, importantly, it is designed to target and remove clots without damaging blood vessels, while also minimizing blood loss, which may improve outcomes,” said Michael Jaff, chief medical officer and VP of clinical affairs, technology and innovation for Boston Scientific’s peripheral interventions business.
“We look forward to accelerating the progress of this platform technology so that we help patients who are dealing with these common yet challenging health conditions,” Jaff added.
Over both 2021 and 2022, the acquisition is expected to cause a slight drop in Boston Scientific’s earnings per share due to amortization and other expenses related to the deal.
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Devoro joins a handful of other Boston Scientific partners and investees that were swallowed up by the devicemaker this year. In January, it outlined plans for a more than $1.2 billion deal to purchase remote cardiac monitor maker Preventice Solutions. Subtracting its existing 22% stake in the company, Boston Scientific ended up shelling out $720 million up front and another $230 million in milestone payments.
Not long after, the company dished out another $1 billion, this time to acquire the ear, nose and throat systems and kidney stone-blasting laser technology of Lumenis, a commercial partner of Boston Scientific for more than two decades.
Finally, in June, it made good on an offer to acquire the 73% of Farapulse that it didn’t already own. In exchange for about $295 million up front—plus $92 million in milestone payments and another swath of undisclosed revenue-based payments through the end of 2023—Boston Scientific folded Farapulse’s electric field generation technology into its own electrophysiology portfolio.