Boston Scientific Corp. has acquired Intelect Medical Inc., a Boston-based company developing technologies for deep brain stimulation for $60 million in cash.
When added to Boston Scientific’s existing equity and debt positions in Intelect, the total value of the acquisition stands at around $78 million. Boston Scientific officials said the deal was funded with cash on hand, and that the acquisition would have no impact on its earnings per share for the next three years.
Intelect Medical’s deep brain stimulation involves using implantable devices to target therapies to the brain using electrical impulses. Boston Scientific estimates the current worldwide market for DBS at $400 million with projections to grow to more than $1.5 billion by 2020. Boston Scientific’s own DBS system, called Vercise DBS, is being evaluated in a clinical trial to treat Parkinson’s disease.
In 2008, when Intelect Medical was based in Cleveland, Ohio, Boston Scientific led an investment of at least $11 million in the company. Intelect Medical quietly relocated its headquarters to Boston some time in the last quarter of 2010.
Boston Scientific in November acquired Sadra Medical Inc. of California for $225 million upfront, with the potential for up to $225 million more in milestone payments. The acquired company develops a repositionable device to replace aortic valves; the device is intended to treat patients with aortic stenosis.