Boston Scientific To Buy Xlumena

(RTTNews) - Boston Scientific Corp (BSX) on Wednesday said it has agreed to buy Xlumena Inc, a venture-backed medical device company that makes minimally invasive devices for Endoscopic Ultrasound guided transluminal drainage of targeted areas within the gastrointestinal tract.

As per the terms of the deal, Boston would make an upfront payment of $62.5 million, an additional payment of $12.5 million upon FDA clearance of the HOT AXIOS stent product, and further sales-based milestones based on sales achieved through 2018.

Boston Scientific currently expects the net impact of the deal on adjusted earnings per share to be immaterial for years 2015 and 2016 and break-even to accretive thereafter, and more dilutive on a GAAP basis as a result of acquisition-related net charges and amortization.

The deal is expected to close this week.

The Xlumena portfolio includes the AXIOS and HOT AXIOS Stent and Delivery Systems. The AXIOS Stent and Delivery System has received U.S. Food and Drug Administration clearance and is the world's first stent designed for endoscopic ultrasound-guided transluminal drainage of symptomatic pancreatic pseudocysts.

The next-generation HOT AXIOS Stent and Delivery System incorporates cautery into the delivery of the AXIOS stent.

Both AXIOS and HOT AXIOS systems have CE Mark for facilitating transgastric or transduodenal endoscopic drainage of pancreatic pseudocysts or the biliary tract. These products are currently sold in select countries in Europe.