Marlborough, Mass.-based Boston Scientific Corp. entered an agreement to acquire privately held NxThera Inc.
Boston Scientific will add NxThera's Rezum system to its existing portfolio of laser therapy systems for the treatment of a non-cancerous prostate enlargement condition called benign prostatic hyperplasia, or BPH.
BPH affects 110 million men worldwide, and more than 12 million symptomatic men in the U.S. are being treated for the condition with medications or procedural approaches, according to Boston Scientific.
The transaction consists of an upfront cash payment of $306 million and up to an additional $100 million in potential commercial milestone payments over the next four years. However, because Boston Scientific already owns a minority stake in the medical device company, it will only pay $240 million up front and up to $85 million in milestone-related payments.
The Rezum system was cleared by the U.S. Food and Drug Administration in 2015 and has the CE mark in EU.
The acquisition is expected to contribute toward Boston Scientific's adjusted earnings per share after 2020 and will close in the second quarter of 2018.