Boston Scientific to Acquire Asthmatx

Under the terms of merger agreement, Boston Scientific will make an upfront cash payment of U.S. $193.5 million and additional payments of up to $250 million, which are contingent upon achievement of specified revenue-based criteria through 2019. The closing of the transaction is subject to customary conditions and is expected to be completed in the fourth quarter of 2010.

"The acquisition of Asthmatx represents an important step in the execution of our strategy to realign Boston Scientific's portfolio,” said Ray Elliott, president and CEO of Boston Scientific. "Given the large underserved patient population and this innovative technology, we expect this transaction to provide meaningful revenue growth in the midterm.”

"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,” said Glen French, CEO of Asthmatx. "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.”

Asthmatx markets the Alair Bronchial Thermoplasty System, which delivers thermal energy to the airway wall in a precisely controlled manner to reduce excessive airway smooth muscle. The procedure is designed to decrease the ability of the airways to constrict, thereby reducing the frequency and severity of asthma attacks. Data from the pivotal Asthma Intervention Research 2 (AIR2) clinical trial showed 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. The procedure is routinely performed under conscious sedation, with patients typically returning home the same day.

Asthma is a common chronic inflammatory disease of the airways characterized by variable and recurring symptoms, reversible airflow obstruction, and bronchospasm. Symptoms include wheezing, coughing, chest tightness, and shortness of breath. Treatment of acute symptoms is usually with an inhaled short-acting beta-2 agonist, such as salbutamol. Symptoms can be prevented by avoiding triggers, such as allergens and irritants, and by inhaling corticosteroids. The prevalence of asthma has increased significantly since the 1970s, with 300 million people currently affected worldwide, with over 250,000 deaths per year.

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