NATICK, Mass. (AP) -- Boston Scientific will buy privately held Asthmatx Inc. in a deal that could be worth more than $440 million, the medical device maker said Monday.
Boston Scientific, which is based in Natick, said it will pay $193.5 million in cash up front. It will then make payments totaling up to $250 million through 2019 based on revenue benchmarks for Asthmatx.
Asthmatx makes and markets the Alair Bronchial Thermoplasty System for the treatment of severe, persistent asthma. The system aims to reduce the frequency of severe asthma attacks by delivering thermal energy to airway walls to decrease their ability to constrict. It received Food and Drug Administration approval last April.
Wells Fargo analyst Larry Biegelsen said the acquisition will increase the company's offerings to lung specialists. Boston Scientific already sells products used to detect and treat certain airway diseases.
"We think the deal makes sense strategically since it will leverage an existing sales force, in a new treatment arena separate from Boston Scientific's slow growing 'cardiac rhythm management' and stent core business."
Asthmatx is based in Sunnyvale, Calif.
The deal is expected to close in the fourth quarter.
Shares of Boston Scientific Corp. rose 2 cents to $5.44 in Monday trading.
Boston Scientific, which is based in Natick, said it will pay $193.5 million in cash up front. It will then make payments totaling up to $250 million through 2019 based on revenue benchmarks for Asthmatx.
Asthmatx makes and markets the Alair Bronchial Thermoplasty System for the treatment of severe, persistent asthma. The system aims to reduce the frequency of severe asthma attacks by delivering thermal energy to airway walls to decrease their ability to constrict. It received Food and Drug Administration approval last April.
Wells Fargo analyst Larry Biegelsen said the acquisition will increase the company's offerings to lung specialists. Boston Scientific already sells products used to detect and treat certain airway diseases.
"We think the deal makes sense strategically since it will leverage an existing sales force, in a new treatment arena separate from Boston Scientific's slow growing 'cardiac rhythm management' and stent core business."
Asthmatx is based in Sunnyvale, Calif.
The deal is expected to close in the fourth quarter.
Shares of Boston Scientific Corp. rose 2 cents to $5.44 in Monday trading.
