Article preview from IN VIVO - December, 2012
In the latest of a series of deals in what many industry executives and analysts consider to be the next blockbuster device product market, Boston Scientific became the third major vascular player to buy its way into the renal denervation space with its recent acquisition of Vessix Vascular for a sum that could amount to $425 million. With this deal, Boston Scientific joins Medtronic, which led the way in 2010 with its stunning potentially billion dollar acquisition of Ardian, followed earlier this year by Covidien’s acquisition of Maya Medical.
Article preview from IN VIVO - December, 2012
In the latest of a series of deals in what many industry executives and analysts consider to be the next blockbuster device product market, Boston Scientific Corp. became the third major vascular player to buy its way into the renal denervation (RDN) space with its recent acquisition of Vessix Vascular Inc. for a sum that could amount to $425 million. With this deal, Boston Scientific joins Medtronic Inc., which led the way in 2010 with its stunning potentially billion dollar acquisition of Ardian , followed earlier this year by Covidien PLC’s acquisition of Maya Medical Inc.
It’s perhaps not surprising that strategics have acted quickly in a market that some analysts predict will hit $2 billion worldwide by 2020 and reach $5-10 billion not long after that, but the pace and valuations of these deals for relatively early-stage start-ups are causing some industry executives to raise the yellow caution flag.
Their hesitancy is not based on the relative sizes of the patient populations that potentially can be treated with renal denervation; these are enormous and some industry executives are predicting that renal denervation will create an interventional market that’s even larger than stents and heart valves. The initial clinical application, drug-resistant hypertension, affects an estimated 15-20% of the 1.2 billion hypertension patients worldwide, and future markets might include other major chronic diseases including diabetes and sleep apnea. Rather, the caution results from the relative handful of treated patients and paucity of data, particularly over the long term, that support this new device therapy for a chronic condition heretofore only managed by drugs. The lack of long-term data notwithstanding, the major strategic players are making sure to have a technology in this emerging market. In addition to the Big Three identified above, St. Jude Medical Inc. rolled out its internally developed EnligHTN system earlier this year and Johnson & Johnson is also developing an internal RDN program.
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