Boston Scientific Corporation To Buy Asthmatx Inc. For US$443 Million

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Main Category: Pharma Industry / Biotech Industry
Also Included In: Respiratory / Asthma
Article Date: 20 Sep 2010 - 8:00 PDT


Boston Scientific Corporation is to acquire Athmatx. Inc, from Synnyvale, California for an upfront payment of $193.5 million plus additional payments of up to $250 million. Boston Scientific says it has just signed a definitive merger agreement with Athmatx. Asthmatx designs, makes and sells a less-invasive, catheter-based bronchial thermoplasty procedure for persistent asthma treatment in patients whose symptoms are poorly controlled with inhaled medications.

Boston Scientific informs that the upfront cash pain will be funded with cash on hand, while the rest is expected to be sourced from approximately two cents dilutive to GAAP EPS (earnings per share) in each 2011 and 2012 (inclusive of about one cent per share amortization expense), break-even in 2013 and accretive thereafter.

Asthmatx's Alair® Bronchial Thermoplasty System was approved by the FDA (Food and Drug Administration) in April, 2010. Bronchial thermoplasty is performed under conscious sedation - the patients usually goes home the same day. It is a less-invasive procedure. Thermal energy is delivered into the airway wall in a precisely controlled manner to reduce excessive airway smooth muscle, resulting in less constriction of the airways and fewer and less severe asthma attacks.

The Alair System has also received CE Mark.

Clinical trials have demonstrated that bronchial thermoplasty is effective and safe for the management of severe asthma. The Cleveland Clinic Foundation named bronchial thermoplasty one of the "Tope Tem Medical Innovations for 2007".

Mario Castro, M.D., Washington University, St. Louis and Principal Investigator for the pivotal Asthma Intervention Research 2 (AIR2) clinical trial, said:

The benefits we have seen with bronchial thermoplasty are impressive and have included a substantial improvement in patients' asthma symptoms. Our data demonstrated clinically meaningful improvements in key outcomes including a reduction in severe asthma exacerbations, a reduction in emergency room visits and a trend toward decreased hospitalizations for asthma. Treated patients missed less time from work, school and other daily activities because of their asthma, and they experienced an overall improvement in their quality of life.

Michael Phalen, President of Boston Scientific's Endoscopy Division, said:

Boston Scientific's acquisition of Asthmatx demonstrates our commitment to providing the most advanced technology solutions to interventional pulmonologists and their patients. This first-of-its-kind interventional treatment option for adult patients with severe asthma is a significant medical advance with the potential of substantially reducing medical costs, as demonstrated by an 84 percent reduction in emergency room visits in the AIR2 trial.

Ray Elliott, President and Chief Executive Officer of Boston Scientific, said:

The acquisition of Asthmatx represents an important step in the execution of our strategy to realign Boston Scientific's portfolio. Given the large underserved patient population and this innovative technology, we expect this transaction to provide meaningful revenue growth in the midterm. We will continue to pursue additional Priority Growth Initiatives to strengthen our Company by buying or building products we understand, to be sold through sales forces we already have.

Glen French, Chief Executive Officer of Asthmatx, said:

By combining our two great organizations we will be able to increase awareness of this novel technology and expand our reach to patients suffering the effects of severe asthma. We will be able to leverage Boston Scientific's sales and marketing expertise to introduce the Alair System to a growing number of physicians and provide much needed relief to many patients affected by this debilitating disease.

What is asthma?

Asthma is a condition that affects the airways that carry air to and from the lungs. People who suffer from this long-lasting or recurrent (chronic) condition are said to be asthmatic.

The inside walls of the sufferer's airways become swollen or inflamed. This inflammation makes the airways extremely sensitive to irritations and increases the chances of an allergic reaction.

As inflammation causes the airways to narrow, less air can pass through them, both to and from the lungs. Symptoms of the narrowing include wheezing (a hissing sound while breathing), chest tightness, breathing problems, and coughing. Asthmatics usually experience these symptoms most frequently during the night and the early morning.

Experts say that asthma is an incurable illness. However, with good treatment and management it can usually be controlled and the patient can lead a normal life.

An asthma attack, also known as an asthma episode, is when symptoms are worse than usual. They can come on suddenly and may be mild, moderate or severe.

What happens during an asthma attack?

• The muscles around the airways tighten up, narrowing the airway.
• Less air is able to flow through the airway.
• Inflammation of the airways increases, further narrowing the airway.
• More mucus is produced in the airways, undermining the flow of air even more.

According to Boston Scientific, asthma is one of the costliest diseases in the world; it is also fairly common. Over 20 million Americans have asthma, says the Asthma and Allergy Foundation of America. At least $18 billion are spent annually in the USA on the management and treatment of asthma. 10 million unscheduled physician visits in America are due to uncontrolled asthma, as are 2 million emergency room visits, half-a-million hospitalizations and 4,000 deaths annually. Approximately 10% to 15% Americans with asthma have severe persistent asthma.

Click here to read about asthma in more detail.

Source: Boston Scientific Inc.

Written by Christian Nordqvist
Copyright: Medical News Today
Not to be reproduced without permission of Medical News Today

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