Boston Scientific to buy Vessix for up to $425M
NATICK, Mass. (AP) — Boston Scientific Corp. said Thursday it agreed to buy Vessix Vascular Inc., a company that makes system that uses radiotherapy to treat high blood pressure, in a deal worth as much as $425 million.
Boston Scientific will pay Vessix $125 million upfront, and it could make another $300 million in milestone payments for clinical development and sales targets. Vessix's V2 renal denervation device uses catheters to send radio frequencies to nerves in the renal system. When those nerves are overactive, they can cause high blood pressure that doesn't respond to medication.
The V2 system has been approved in the European Union and Australia, and Vessix expects to make a full launch in European countries in 2013. The system has not been approved in the U.S. Boston Scientific said Vessix, based in Laguna Hills, Calif., will become part of its peripheral intervention business. It expects to complete the purchase before the end of November.
Shares of Boston Scientific were unchanged at $5.16 in morning trading.