Boston Scientific Corp. exercised its option to acquire the remaining stake in Millipede Inc. for $325 million to expand its portfolio of heart devices.
In January, Marlborough, Mass.-based Boston picked up a minority stake in Millipede for $90 million and was given the option to fully acquire the privately held medical device maker if Millipede successfully completed a first-in-human clinical study.
Santa Rosa, Calif.-based Millipede is developing a device called IRIS transcatheter annuloplasty ring system to treat patients with severe mitral regurgitation who cannot have open heart surgery. Mitral regurgitation is a condition in which the heart's mitral valve does not close tightly, which allows the blood to flow backward in the heart.
The system uses a procedure to tighten or reinforce the ring around the valve in the heart, which reduces the size of the dilated mitral annulus. IRIS, which is delivered by a transcatheter-transseptal delivery system, can be used as a stand-alone device or in combination with other technologies.
Millipede is also eligible for an additional $125 million if it achieves a certain commercial milestone.
The deal is expected to close in the first quarter of 2019, subject to customary closing conditions.