PharmaShots Interview: Boston Scientific’s Meghan Scanlon Shares Insight on the Completion of its $1.07B Lumenis Acquisition

In an interview with PharmaShots, Meghan Scanlon, Senior Vice President and President for Urology and Pelvic Health at Boston Scientific shares her views on the completion of its $1.07B acquisition of Lumenis surgical business

Shots:

Boston Scientific reported the closing of its acquisition of the Lumenis surgical business from a BPEA affiliate for an upfront of $1.07B. The acquisition follows the Mar 2021 agreement which acquires the Lumenis global surgical business
The Lumenis surgical business includes premier laser systems, fibers, and accessories used for urology and otolaryngology procedures and the total revenue is expected to be ~$200M for full-year 2021
BPEA will continue to hold the rights to Lumenis’ aesthetics and ophthalmology businesses. Through this acquisition, Boston Scientific will sell these lasers & fibers along with the otolaryngology laser portfolio to all geographies

Tuba: Can we discuss the details of this acquisition (deal terms, acquisition rate, and other financial details, etc.)?

Meghan Scanlon: We have acquired the global surgical business of Lumenis LTD from an affiliate of Baring Private Equity Asia for an upfront cash payment of $1.07 billion. The surgical business of Lumenis LTD includes premier laser systems, fibers, and accessories used for urology and otolaryngology procedures, with 2021 net sales anticipated to be approximately $200 million. BPEA will retain ownership of the Lumenis global aesthetics and ophthalmology businesses.

Tuba: Can we discuss the portfolio which Boston Scientific will acquire with this acquisition?

Meghan Scanlon: Our acquisition of the surgical business of Lumenis LTD includes its premier laser systems, fibers, and accessories for procedures, including the MOSES technology, which Boston Scientific currently sells in the U.S. and Japan. The MOSES technology has revolutionized urology laser procedures by improving the clinical efficacy and efficiency of kidney stones.

MOSES technology addresses previous limitations of holmium lasers in lithotripsy procedures (stone retropulsion, inefficient energy transmission, etc.) and results in shortened procedure time and better treatment outcomes – reduction in migration of stones, better physician control, and enhanced efficiency.

Holmium lasers are also a well-accepted therapy for enucleation of the prostate during the treatment of benign prostatic hyperplasia (BPH) in key markets internationally. With this acquisition, we are adding this compelling solution for prostate enucleation, which complements Rezūm Water Vapor Therapy and the Greenlight Laser Therapy System in our broad portfolio of innovation to treat a wide continuum of BPH patients

Tuba: Can we discuss why the surgical business of Lumenis LTD stood out for Boston Scientific to acquire from BPEA? What were the gaps in the present offerings of Boston Scientific which this acquisition can address?

Meghan Scanlon: Lasers are a critical part of how surgeons treat kidney stones. About 75% of stone cases involve a laser. Boston Scientific is the global category leader in kidney stone management, and Lumenis is the global category leader in laser lithotripsy due to a long legacy of leading innovations and strengthened by its differentiated MOSES technology.

Boston Scientific has distributed Lumenis products for more than 20 years in the U.S. and Japan. In the U.S., we have a long-standing collaboration that offers our customers the strength of our urology expertise and our broad kidney stone portfolio combined with the expertise of the team that came over from the acquisition of the surgical business of Lumenis LTD.

This acquisition allows us to bring the broader surgical business of Lumenis LTD’s portfolio directly to customers globally, particularly in Asia and EMEA. It also allows us to establish a laser R&D and manufacturing center of excellence in Israel – further expanding our global presence.

Tuba: How is Boston Scientific going to utilize the newly acquired products from the surgical business of Lumenis LTD?

Meghan Scanlon: The addition of the surgical business of Lumenis LTD’s technologies further enhances our stone offerings and builds upon the strong foundation of our market-leading broad stone portfolio. Boston Scientific already maintains a robust portfolio of kidney stone-related devices, including numerous retrieval devices and the LithoVue Single-Use Digital Flexible Ureteroscope, which delivers detailed high-resolution digital images for high-quality visualization and navigation, and helps physicians remove stones quickly and safely. Fibers, amongst other stone-related disposables (guidewires, baskets, etc.) go through the ureteroscope to enable kidney stone removal.

Boston Scientific is also acquiring the surgical business of Lumenis LTD’s robust global capabilities and deep expertise in both laser technology and capital service and repair, which will help drive strategic growth and strengthen our position in urology lasers. The deal will add critical capabilities to our current capital equipment manufacturing capabilities, while also expanding our service and repair footprint – representing additional growth opportunities for Boston Scientific. In the coming months, we will work to determine the best structure to support and grow the urology and ENT businesses globally.

Tuba: Can you discuss more about other deals of the year done by Boston scientific?

Meghan Scanlon: At Boston Scientific, we continue to pursue strategic acquisitions that help us expand the treatment options we offer across various categories, including urology and pelvic health. These acquisitions help to grow our global footprint and accelerate the delivery of these robust offerings to even more clinicians – ultimately serving more patients worldwide – while also improving our top-line growth and margins.

We’ve announced several acquisitions across our business this year, including most recently Baylis Medical, which will complement our existing electrophysiology and structural heart portfolios to include the radiofrequency (RF) NRG and VersaCross Transseptal Platforms as well as a family of guidewires, sheaths, and dilators used to support left heart access; and Devoro Medical, which will add the WOLF Thrombectomy Platform to our peripheral interventions portfolio.

In the first half of the year, we exercised our option to acquire the remaining shares of Farapulse, Inc., including the FARAPULSE Pulsed Field Ablation (PFA) System – a non-thermal ablation system for the treatment of atrial fibrillation (AF) and other cardiac arrhythmias. We also completed our acquisition of Preventice Solutions, Inc., a privately-held company that offers a full portfolio of mobile cardiac health solutions and services, ranging from ambulatory cardiac monitors – including short and long-term Holter monitors – to cardiac event monitors and mobile cardiac telemetry.

Tuba: Would you like to share some of the upcoming products/devices to be introduced from BS’s pipeline?

Meghan Scanlon: We are continuously innovating within our kidney stone portfolio. Our LithoVue Single-Use Digital Flexible Ureteroscope has changed the way urologists perform flexible ureteroscopy and we are working on a next-generation that will offer physicians even more features.

Tuba: Are there any patient support, patient engagement, and digital initiatives you would like to discuss?

Meghan Scanlon: Boston Scientific provides comprehensive online resources for patients with various conditions and the health care providers who treat them, including MyKidneyStone.com, Rezum.com, SpaceOAR.com, ChooseYou.com, Fixincontinence.com, and EDCure.com, as well as numerous educational webinars.

StoneSmart Solutions for instance is a newly revamped resource we’ve launched for healthcare providers and is our vision for the future of stone management. While continuing to deliver peer-to-peer education and case studies, we are also building a comprehensive platform to transform kidney stone care and minimize the economic burden to healthcare systems. With StoneSmart, our aim is to deliver a connected ecosystem of innovative products and services intended to empower surgical decisions, enhance the provider experience, optimize patient care, and ultimately, advance the treatment of kidney stone disease globally.

EDUCARE is another dynamic online resource we offer for health care providers, containing personalized, interactive educational experiences and online access to a broad and deep source of on-demand content, curated by medical specialty, product, topic, and procedure.

Source: Awareness Days

About Author: Meghan Scanlon is the Senior Vice President and President for Urology and Pelvic Health at Boston Scientific. She is responsible for developing and bringing to market innovative, industry-leading solutions for urological, urogynecological, and gynecological diseases. She holds a B.S. in Mechanical Engineering from Tufts University and both her M.B.A. and M.S.M.E. from Massachusetts Institute of Technology.