Boston Scientific Corporation to Acquire Rhythmia Medical, Inc.
The Boston Scientific Corporation, with a location in Maple Grove, could end up paying more than $200 million in the deal with Rhythmia Medical, which would include upfront and milestone payments.
"The acquisition of Rhythmia Medical is a decisive step forward for Boston Scientific in the electrophysiology ablation business, including the high-growth segment of complex ablation," said Hank Kucheman, chief executive officer of Boston Scientific. "Electrophysiology is a $2.5 billion market and growing at a double-digit pace, representing a key growth opportunity for us. Rhythmia Medical has a strong and impressive team, and its technology is expected to add innovation and breadth to Boston Scientific's suite of solutions in this strategically important space."
The Burlington, Mass. based Rhythmia Medical, Inc. is a “developer of next-generation mapping and navigation solutions” used in cardiac related procedures. According to an article on the Minneapolis-St. Paul Business Journal website, Rhythmia “makes a 3-D mapping system that electrophysiologists can use to navigate catheters inside the body while performing procedures to treat abnormal heart rhtyhms.”
The agreement, according to Boston Scientific, includes a $90 initial payment upon the closing and an additional $175 million “in contingent payments based on regulatory, commercial, and sales-based milestones through 2017.” The deal between the two companies is expected to close by Friday, Oct. 12.
"Rhythmia Medical's revolutionary mapping technology is expected to significantly enhance physician treatment options and ultimately facilitate and improve what today are long and complicated procedures," said Doron Harlev, co-founder and co-chief executive officer of Rhythmia Medical. "We are excited to combine our mapping system with Boston Scientific's strong catheter platform and commercializahttp://maplegrove.patch.com/admin/articles/newtion capabilities."
Once the mapping system has receives the required approval, Boston Scientific states it is expecting to begin a “limited” market launch in 2013 and full launch in 2014.
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