Summary
Boston Scientific Corporation (BSX) announced on September 6, 2018, that it has entered into a definitive agreement to acquire Augmenix, Inc. for an upfront cash payment of $500 million, with potential additional payments of up to $100 million tied to sales-based milestones. Augmenix is known for its SpaceOAR® System, a therapy designed to mitigate side effects for prostate cancer radiotherapy patients. The acquisition is anticipated to close in early Q4 2018, pending standard closing conditions. While the transaction is expected to have a minimal impact on adjusted earnings per share (EPS) in 2018 and 2019, it is projected to become accretive to adjusted EPS starting in 2020 and increasingly so thereafter. On a GAAP basis, the accretion is expected to be less pronounced due to amortization and acquisition-related charges.
Key Highlights
- 1Boston Scientific to acquire Augmenix, Inc. for $500M upfront plus up to $100M in sales-based milestones.
- 2Acquisition targets Augmenix's SpaceOAR® System, a novel therapy for prostate cancer radiotherapy patients.
- 3Transaction expected to close in early Q4 2018, subject to customary conditions.
- 4Projected to be immaterial to adjusted EPS in 2018-2019, with accretion expected from 2020 onwards.
- 5GAAP EPS impact will be less accretive or more dilutive due to amortization and acquisition costs.
- 6The press release included as an exhibit provides further details on the agreement.