Boston’s deal-making ramps up with Augmenix buy

Boston Scientific has cemented its status as the most acquisitive medtech company of the year with the purchase of Augmenix for $500m up front. The deal is not only Boston’s biggest of 2018 so far, but also its largest since the $1.6bn acquisition of Endo’s American Medical Systems urology portfolio in 2015. Like that earlier purchase, the Augmenix deal is in urology – the company’s CE-marked and FDA-approved SpaceOAR system is designed to prevent rectal radiation in men undergoing radiotherapy for prostate cancer. Boston expects product sales of $80m this year and $90m in 2019. Augmenix marks Boston’s eighth acquisition this year, so after several years' paying off hefty legal fees, it seems that Boston is ready to spend on M&A again. So far, the company has kept to what it knows best: it already leads the urology sector and is the third-biggest player in cardiology, where many of its other 2018 acquisitions have come. It has also stuck to bolt-on deals, in many cases involving companies it already had a stake in. But, with a dearth of mega-deals in medtech so far this year, bankers might be hoping that Boston is ramping up for a bigger purchase.