Boston Scientific acquired Vertiflex, developer of the Superion Indirect Decompression System.
Five things to know:
1. Pending a successful close of the transaction, Boston Scientific plans to pay $465 million in upfront cash for Vertiflex and make additional payments for the next three years based on reaching certain milestones.
2. The Superion procedure is expected to have $60 million in sales this year. The minimally invasive procedure is designed for patients with lumbar spinal stenosis and performed by chronic pain physicians.
3. Boston Scientific expects to complete the acquisition in the second quarter and expects it to be immaterial to adjusted earnings per share through 2020 and then accretive thereafter.
4. Vertiflex was founded in 2005 and has around 100 employees.
5. Superion has FDA approval and has been proven effective in a two-year, randomized trial including 400 patients. In the five-year follow-up with 80 patients, 90 percent were satisfied with the treatment and 80 percent reported the procedure treated their leg pain.
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