Boston Scientific Corp. agreed to buy privately held Augmenix, Inc. for $500 million in cash plus up to $100 million in sales-based milestone payments.
Bedford, Mass.-based Augmenix makes the SpaceOAR System, a medical device used to reduce side effects resulting from prostate cancer radiotherapy.
Prostate cancer radiotherapy can lead to high radiation exposure to the rectum due to its proximity to the prostate.
SpaceOAR involves injecting a compound through minimal surgical incisions to create additional space between the rectum and prostate, thus reducing radiation exposure.
The product is expected to record sales of $50 million in 2018, and close to $90 million in 2019, Marlborough, Mass.-based Boston Scientific said in a Sept. 6 release.
The maker of heart stents and pacemakers added that more than 1.1 million men are diagnosed with prostate cancer worldwide every year, with about 400,000 men expected to undergo radiotherapy.
Boston Scientific said the transaction is expected to be immaterial to its adjusted EPS in 2018 and 2019, but will add to its earnings starting in 2020. The deal is set to close in the fourth quarter of 2018.