What You Should Know:
– Boston Scientific announces an agreement to acquire Preventice
Solutions, a leading developer of mobile health solutions and remote monitoring
services that connect patients and caregivers for $925M in cash.
– The acquisition of external cardiac monitoring technologies and services providers will expand Boston Scientific’s rhythm management diagnostics portfolio and capabilities.
Boston
Scientific today announced that it has acquired
Preventice Solutions, Inc.,
a Minneapolis, MN-based company which offers a full portfolio of mobile cardiac
health solutions and services, ranging from ambulatory cardiac monitors –
including short and long-term Holter monitors – to cardiac event monitors and
mobile cardiac telemetry.
The Preventice product portfolio includes the BodyGuardian®
family of remote, wearable cardiac monitors for adult and pediatric patients.
The monitors use a fully-integrated, cloud-based platform supported by an
independent diagnostic testing facility, where clinical technicians and artificial
intelligence (AI) algorithms provide insights that may lead to improved
clinical diagnoses and outcomes. Preventice’s integration of AI and human
expertise is designed to enhance physician efficiency and experience.
Financial Details
Under terms of the acquisition, Boston Scientific has agreed
to pay $925M in upfront cash, and up to an additional $300 million in a potential
commercial milestone payment. Boston Scientific has been an investor in
Preventice since 2015 and currently holds an equity stake of approximately 22
percent, which is expected to result in a net payment of approximately $720
million upon closing and a milestone payment of up to approximately $230
million. Preventice recorded net sales of $158 million in 2020 – a 30 percent
growth rate from the previous year.
Acquisition Expands Boston Scientific’s Rhythm Management
Diagnostics Portfolio
“This acquisition will provide Boston Scientific with a foothold in the high-growth ambulatory electrocardiography space, which strongly complements our recent entrance into the implantable cardiac monitor market and will serve as an important component of our category leadership strategy in cardiac diagnostics and services – a nearly $2B market anticipated to grow double digits annually,” said Scott Olson, senior vice president and president, Rhythm Management, Boston Scientific. “We are confident that by adding the broad technology portfolio and expertise of Preventice, our combined teams can continue to deliver rapid growth in these highly-attractive markets while also establishing an important adjacency to our core cardiac rhythm management and electrophysiology businesses.”
