Boston Scientific has entered into a definitive agreement to acquire privately-held Rhythmia Medical, a developer of next-generation mapping and navigation solutions for use in cardiac catheter ablations and other electrophysiology procedures, including atrial fibrillation and atrial flutter. The transaction is expected to close by Friday 12 October.
“The acquisition of Rhythmia Medical is a decisive step forward for Boston Scientific in the electrophysiology ablation business, including the high-growth segment of complex ablation,” said Hank Kucheman, chief executive officer of Boston Scientific. “Electrophysiology is a US$2.5 billion market and growing at a double-digit pace, representing a key growth opportunity for us. Rhythmia Medical has a strong and impressive team, and its technology is expected to add innovation and breadth to Boston Scientific’s suite of solutions in this strategically important space.”
“Rhythmia Medical’s revolutionary mapping technology is expected to significantly enhance physician treatment options and ultimately facilitate and improve what today are long and complicated procedures,” said Doron Harlev, co-founder and co-chief executive officer of Rhythmia Medical. “Our system is expected to become a very promising tool for physicians to treat patients with complex cardiac arrhythmias. We are excited to combine our mapping system with Boston Scientific’s strong catheter platform and commercialisation capabilities.”
Once the mapping system is cleared by the FDA and receives the CE mark approval in Europe, Boston Scientific expects to begin a limited market launch of the system in 2013 and full market launch in 2014.
The agreement calls for an upfront payment of US$90 million payable upon transaction closing, and up to an additional US$175 million in contingent payments based on regulatory, commercial, and sales-based milestones through 2017.