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Boston Scientific Announces Agreement to Acquire Valencia Technologies Corporation

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Acquisition to expand urology offerings for people living with overactive bladder MARLBOROUGH, Mass....

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AI Summary

Boston Scientific Corporation has announced the planned acquisition of Valencia Technologies Corporation, focusing on innovative solutions for bladder dysfunction. This will enhance BSX's urology portfolio as they target a significant market with nearly 30 million adults affected by overactive bladder, which could drive future growth.

Sentiment Rationale

This acquisition aligns with BSX's growth strategy and targets a sizable addressable market, which historically has supported stock appreciation following strategic expansions.

Trading Thesis

Invest in BSX for long-term growth potential as they expand their urology offerings.

Market-Moving

  • The acquisition could enhance BSX's competitive edge in urology market.
  • Expected earnings impact may influence investor sentiment positively.
  • 30 million potential U.S. patients represents significant market opportunity.
  • Regulatory approval status may affect acquisition timeline.

Key Facts

  • Boston Scientific to acquire Valencia Technologies for bladder dysfunction treatment.
  • Valencia's eCoin® System is an innovative treatment for overactive bladder.
  • 30 million Americans suffer from overactive bladder symptoms.
  • The acquisition expected to close in H1 2026, impacting financials slightly.
  • The deal will expand Boston Scientific's urology product offerings.

Companies Mentioned

  • Valencia Technologies Corporation (N/A): Focuses on innovative treatments for bladder dysfunction.

Corporate Developments

This falls under 'Corporate Developments' as it reflects Boston Scientific's strategic move to enhance its product offerings and market presence in urology, which can lead to competitive advantages in a growing sector.

Boston Scientific Corporation to Acquire Valencia Technologies Corporation

Boston Scientific Corporation (NYSE: BSX) has announced a definitive agreement to acquire Valencia Technologies Corporation, a privately held medical technology company specializing in innovative solutions for bladder dysfunction. This strategic acquisition is aimed at enhancing Boston Scientific's offerings in the urology sector, particularly for patients suffering from overactive bladder (OAB).

Details of the Acquisition

The focus of Valencia Technologies lies in the development of the eCoin® System, an implantable tibial nerve stimulation (ITNS) device designed to treat urge urinary incontinence (UUI)—a prevalent symptom associated with OAB. In the United States alone, nearly 30 million adults aged 40 and older experience bothersome symptoms related to OAB, which can significantly impair their quality of life.

  • Approximately 19% of patients receive treatment for OAB beyond behavioral adjustments.
  • The eCoin system was approved by the U.S. Food and Drug Administration in 2022.
  • In clinical trials, about 68% of patients showed at least a 50% reduction in UUI episodes after receiving the device.

Implications for Boston Scientific's Urology Business

Meghan Scanlon, Senior Vice President and President of Urology at Boston Scientific, emphasized the importance of this acquisition, stating, "The addition of the eCoin system to the Boston Scientific portfolio will enable us to expand into implantable tibial nerve stimulation (ITNS), a high-growth adjacency for our Urology business." The integration of ITNS technology complements Boston Scientific’s existing pelvic health products, allowing for a more comprehensive range of treatment options for patients.

Anticipated Timeline and Financial Impact

The acquisition is expected to close in the first half of 2026, subject to customary closing conditions. Financially, Boston Scientific anticipates that the transaction will have an immaterial impact on adjusted earnings per share for the year 2026. However, it may be more dilutive on a GAAP basis due to acquisition-related net charges and amortization expenses. Specific terms of the transaction have not been disclosed.

About Boston Scientific

Boston Scientific has been a pioneering leader in medical technology for over 45 years, transforming lives through innovative solutions that enhance patient health worldwide. The company offers a diverse portfolio of devices and therapies that help healthcare providers diagnose and treat complex diseases across various medical fields, including cardiovascular, respiratory, and urological health.

Forward-Looking Statements

This announcement includes forward-looking statements regarding Boston Scientific’s future performance and the expected benefits of the acquisition. Factors influencing these statements may include economic conditions, regulatory changes, and risks associated with the integration of Valencia Technologies. As a result, readers should not place undue reliance on these projections.

Contact Information

For further information, please contact:

  • Nate Gilbraith, Media Relations - +1 (701) 212-9589
  • Lauren Tengler, Investor Relations - +1 (508) 683-4479

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