Medical device giant Boston Scientific announced a $3.7 billion deal on Monday to augment its urology portfolio. The company is acquiring Axonics, a maker of neurostimulation devices that treat urinary and bowel dysfunction, for $71 in cash per share.

The deal, announced at this year’s J.P. Morgan Healthcare Conference in San Francisco, is expected to close in the first half of 2024. Experts agree that the acquisition of Axonics’ device portfolio will make a profitable impact on Boston Scientific’s urology business.

This latest acquisition is a continuation of Boston Scientific’s “buying spree over the past 12-18 months across several medtech sectors,” pointed out Jennifer O’Brien, a partner in West Monroe’s mergers and acquisitions practice, in a statement she sent to MedCity News.

In 2022, the company announced acquisitions of hydrogel maker Obsidio, endoscopy device manufacturer Apollo Endosurgery and cardiovascular treatment device company Acotec Scientific. Last year, the company bought Relievant Medsystems, which makes devices for chronic back pain.

Southern California-based Axonics, which went public in 2018, offers both rechargeable and recharge-free implants for sacral neuromodulation — a minimally invasive procedure that treats overactive bladder and bowel incontinence. This type of therapy delivers mild electrical pulses to the sacral nerves, which control the bladder, bowel and pelvic floor muscles. 

This modulation can help regulate and normalize nerve signaling — leading to improved coordination of bladder and bowel movements, reduced urinary incontinence and alleviation of symptoms associated with pelvic floor dysfunction.

Axonics’ latest investor deck shows that the company owns a 27% share of the sacral neuromodulation market. In 2022, about 14,000 people were implanted with Axonics’ device — whereas about 37,500 were implanted with the one produced by Medtronic.

BTIG analysts Marie Thibault and Sam Eiber pointed out that the sacral neuromodulation market is far from reaching its full potential.

“This market remains significantly underpenetrated with [sacral neuromodulation] holding just 23% share of 3rd line therapy and with only 7% of adults diagnosed with [overactive bladder] by a physician treated with 3rd line therapy,” they wrote in their analyst report.

Their report stated that Axonic’s portfolio will “serve as a nice adjacency” for Boston Scientific’s urology business, given its profile for high growth in an underpenetrated market. O’Brien agreed, adding that Axonics will now have the global marketing and distribution platform it needs to reach more patients across the globe.

Axonics said it expects to deliver a net revenue of $366 million for 2023, which would represent 34% growth over the prior fiscal year.

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