Boston Scientific Acquires Cosman Medical

(Burlington, MA, USA), which manufactures radiofrequency ablation (RFA) systems used to treat chronic pain.

With the acquisition, the Cosman Medical team and products will now become part of the Boston Scientific Neuromodulation business, which offers Spinal Cord Stimulator (SCS) systems to treat chronic pain, and Deep Brain Stimulation systems for the treatment of Parkinson's disease, dystonia and essential tremor.

RFA works by applying heat to small areas of nerve tissue to interrupt pain signals, while SCS works by sending electrical signals to the spinal cord, masking pain signals from reaching the brain. RFA is generally used prior to SCS and provides effective relief from chronic pain, while other patient’s progress to SCS to manage their pain.

Boston Scientific’s acquisition of Cosman Medical follows the recent launch of its new Precision Montage MRI SCS System for customized relief from chronic pain and full body magnetic resonance imaging (MRI) in a 1.5 Tesla environment. The company’s portfolio also includes the Precision Spectra System for providing broad coverage for pain with 32 contacts, and the Precision Novi System, a high-capacity non-rechargeable device.

Boston Scientific currently expects the net impact of this transaction on adjusted earnings per share to be break-even in 2016 and accretive thereafter and more dilutive on a GAAP basis as a result of acquisition-related net charges and amortization.

"This acquisition is a natural extension of our current product portfolio and will help us provide physicians and patients more options to address chronic pain with non-opioid therapeutic treatments," said Maulik Nanavaty, senior vice president and president, Neuromodulation, Boston Scientific. "The addition of the Cosman Medical product line, which is built on industry-leading technology and known for its high-quality, expands our capability to provide innovative solutions for the treatment of chronic pain."

"We are pleased to join the Boston Scientific team and help expand access to leading treatments for chronic pain," said Eric Cosman, Jr, PhD, scientific director, Cosman Medical. "This acquisition comes at a time when our society is recognizing the impact of relying extensively on opioids to treat pain and is looking for additional approaches. Our mutual commitment to innovation and quality will help us deliver solutions."

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