MARLBOROUGH, Mass.,
Aug. 8, 2018 /PRNewswire/ -- Boston
Scientific Corporation (NYSE: BSX) today announced it has signed an
agreement to acquire VENITI, Inc., a privately-held company in
Fremont, California which has
developed and commercialized the VICI VENOUS STENT®
System for treating venous obstructive disease. Boston Scientific
has been an investor in VENITI since 2016 and currently owns 25
percent of the company. The transaction price for the remaining
stake consists of $108
million up-front cash, as well as up to $52 million in payments contingent upon U.S. Food
and Drug Administration (FDA) approval of the VICI stent
system.
Venous obstructive disease – instances of abnormal, blocked or
damaged veins – affects more than 1.1 million people in
the United States and Western Europe annually. Vein obstructions,
often caused by conditions such as deep vein thrombosis, post
thrombotic syndrome and May-Thurner syndrome, can prevent proper
blood circulation and cause patients to experience pain, swelling,
ulcers and a diminished quality of life. Physicians often choose to
open the obstructed vessel with a stent to reinstate proper blood
flow to the heart and lungs and reduce a patient's symptoms.
The self-expanding, nitinol VICI stent system was developed
specifically for use in the venous anatomy, which presents
different challenges than placing stents in the arterial vascular
system. The VICI stent is designed to withstand compression and
maintain patency and flexibility over the course of a patient's
life expectancy.
"This stent system was designed with the distinctive demands of
the venous system in mind, and built to provide physicians with a
high-quality lumen across a variety of venous anatomies and disease
states," said Jeff Elkins, president and Chief Executive
Officer of VENITI. "We are excited to see this stent technology
become even more accessible to physicians and the patients they
treat under the leadership of Boston Scientific."
The VICI stent system received CE Mark in 2013 and VENITI
submitted a pre-market approval (PMA) application to the FDA in
June, leveraging results from the recently completed VIRTUS pivotal
study. Currently in the U.S., there are no stent technologies
specifically indicated for use in the peripheral venous system.
"With the unique benefits of this differentiated technology and
the strong experience of Boston Scientific in the overall venous
market, we believe the VICI stent will become an important choice
for physicians who choose stents to treat patients suffering from
venous disease," said Jeff Mirviss,
senior vice president and president, Peripheral Interventions,
Boston Scientific. "Along with our leading AngioJet™
thrombectomy platform and venous product pipeline, we look forward
to meeting the needs of physicians treating both chronic and acute
venous disease."
The acquisition of VENITI is expected to be immaterial to Boston
Scientific adjusted earnings per share (EPS) in 2018 and 2019, and
accretive thereafter. On a GAAP basis for 2019 and subsequent
years, the transaction is expected to be less accretive, or more
dilutive as the case may be, due to amortization expense and
acquisition-related net charges. For 2018 on a GAAP basis, the
transaction is expected to be accretive due to a one-time gain on
prior investment. The completion of this transaction is imminent,
subject to customary closing conditions.
In the U.S., the VICI Stent System is an investigational device
and is not available for sale.
About Boston Scientific
Boston Scientific transforms
lives through innovative medical solutions that improve the health
of patients around the world. As a global medical technology leader
for more than 35 years, we advance science for life by providing a
broad range of high performance solutions that address unmet
patient needs and reduce the cost of healthcare. For more
information, visit www.bostonscientific.com and connect on Twitter
and Facebook.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements may be identified by words like
"anticipate," "expect," "project," "believe," "plan," "estimate,"
"intend" and similar words. These forward-looking statements are
based on our beliefs, assumptions and estimates using information
available to us at the time and are not intended to be guarantees
of future events or performance. These forward-looking statements
include, among other things, statements regarding the acquisition,
the financial and business impact of the transaction, product
launches and product performance and impact. If our underlying
assumptions turn out to be incorrect, or if certain risks or
uncertainties materialize, actual results could vary materially
from the expectations and projections expressed or implied by our
forward-looking statements. These factors, in some cases, have
affected and in the future (together with other factors) could
affect our ability to implement our business strategy and may cause
actual results to differ materially from those contemplated by the
statements expressed in this press release. As a result, readers
are cautioned not to place undue reliance on any of our
forward-looking statements.
Factors that may cause such differences include, among other
things: future economic, competitive, reimbursement and regulatory
conditions; new product introductions; demographic trends; the
closing and integration of acquisitions; intellectual property;
litigation; financial market conditions; and future business
decisions made by us and our competitors. All of these factors are
difficult or impossible to predict accurately and many of them are
beyond our control. For a further list and description of these and
other important risks and uncertainties that may affect our future
operations, see Part I, Item 1A – Risk Factors in our most recent
Annual Report on Form 10-K filed with the Securities and Exchange
Commission, which we may update in Part II, Item 1A – Risk Factors
in Quarterly Reports on Form 10-Q we have filed or will file
hereafter. We disclaim any intention or obligation to publicly
update or revise any forward-looking statements to reflect any
change in our expectations or in events, conditions or
circumstances on which those expectations may be based, or that may
affect the likelihood that actual results will differ from those
contained in the forward-looking statements. This cautionary
statement is applicable to all forward-looking statements contained
in this document.
Use of Non-GAAP Financial Measures
To supplement our
consolidated financial statements presented on a GAAP basis, we
disclose certain non-GAAP financial measures, including adjusted
net income and adjusted net income (earnings) per share that
excludes certain charges and/or credits, such as amortization
expense and acquisition-related net charges (credits). These
non-GAAP financial measures are not in accordance with generally
accepted accounting principles in the
United States and should not be considered in isolation from
or as a replacement for the most directly comparable GAAP financial
measures. Further, other companies may calculate these non-GAAP
financial measures differently than we do, which may limit the
usefulness of those measures for comparative purposes. For further
information regarding our non-GAAP measures, see Part II, Item 7 -
Management's Discussion and Analysis of Financial Condition and
Results of Operations in our most recent Annual Report on Form
10-K, which we may update in Quarterly Reports on Form 10-Q we have
filed or will file hereafter.
CONTACTS:
Trish Backes
Media Relations
(651) 582-5887 (office)
trish.backes@bsci.com
Susie Lisa, CFA
Investor Relations
(508) 683-5565 (office)
BSXInvestorRelations@bsci.com
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SOURCE Boston Scientific Corporation