Boston Scientific's (BSX) Millipede Deal Aids MR Business
Boston Scientific Corporation BSX has recently announced a major investment in Santa Rosa, CA-based Millipede, Inc., to augment its position in the field of mitral regurgitation (MR). Millipede is the developer of IRIS Transcatheter Annuloplasty Ring System for the treatment of severe MR.
Per the terms of the agreement, Boston Scientific has purchased a portion of Millipede for $90 million. The company has also kept an option to acquire the remaining shares of Millipede at any point of time prior to the completion of a first-in-human clinical study that meets certain parameters.
Also, Millipede has the option to compel Boston Scientific to purchase its remaining shares upon the closure of the clinical study. The full buyout of Millipede needs additional $325 million payment by Boston Scientific and a further $125 million will be paid upon achievement of a commercial milestone.
In this regard, management noted that MR occurs by a leaking mitral valve causing blood to regurgitate from the left ventricle to the left atrium of the heart. This condition can gradually lead to heart failure and heart rhythm problems. Patients with severe MR often complain of compromised heart functions and cannot tolerate open-heart surgery for the repair or replacement of the leaking valve.
Management is optimistic about the large patient population in this space, which is unfortunately underserved at the moment. Hence, this area represents a lucrative market to be tapped into. This patient population could benefit from a fully-percutaneous transcatheter procedure that can fix the dilated mitral annulus and reduce regurgitation without undergoing surgery.
Encouragingly, the Millipede IRIS annuloplasty ring claims to be highly customizable to a specific patient's anatomy and disease state. This device is supplied via a transcatheter-transseptal delivery system and follows the standard surgical approach to mend and decrease the size of a dilated mitral annulus.
On a positive note, the global transcatheter mitral valve replacement market is growing stupendously at a CAGR of approximately 22% over 2016-2020, as per the data provided by Technavio.
Apart from Boston Scientific, other major players in this field are Edwards Lifesciences Corporation EW, Medtronic plc MDT and Abbott ABT.
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