Boston Scientific to Buy Lumenis’ Surgical Biz for $1B

Boston Scientific entered an agreement with a Baring Private Equity Asia (BPEA) affiliate to acquire the surgical business of Lumenis, a privately-held Israeli firm that develops and commercializes energy-based medical solutions, for an upfront cash payment of $1.07 billion. BPEA will continue to own the Lumenis global aesthetics and ophthalmology businesses. Lumenis’ surgical business includes laser systems, fibers, and accessories for urology and otolaryngology procedures. Foundational to its urology portfolio is the proprietary MOSES technology, which helps management of patients with kidney stones.
 
Worldwide, over one in 10 adults develop kidney stones annually with up to half of patients having a repeat stone within five years of the first occurrence.^1,2,3,4 Some kidney stones naturally pass through the urinary tract, but complex or larger stones need intervention to remove. This can be done via surgery or less invasive procedures like lithotripsy, which uses a ureteroscope to find the stone and a laser to break it apart.
 
“The MOSES laser technology, paired with our LithoVue Single-Use Digital Flexible Ureteroscope and comprehensive kidney stone management portfolio, will enable execution of our strategy for our stone franchise,” Meghan Scanlon, senior vice president and president, Urology and Pelvic Health, Boston Scientific, told the press. “With double-digit compound annual growth from 2015 to 2019, we look forward to adding the innovative Lumenis laser portfolio, talented employees and surgical laser center of excellence to our organization. The acquisition will expand our global footprint throughout Europe and Asia and accelerate the delivery of our robust stone management offerings to more urologists—ultimately serving more patients worldwide – while also improving our top-line growth and margins.”
 
Boston Scientific has worked with Lumenis for over 20 years and currently sells the company’s urology laser portfolio in the U.S. and Japan through a distribution arrangement. Boston Scientific will sell these lasers and fibers—as well as the otolaryngology laser portfolio—to all geographies. 
 
“We take great pride in our heritage of innovation in surgical laser solutions which are helping millions of patients worldwide,” said Lumenis CEO Tzipi Ozer-Armon. “Notably the proprietary, patent-protected MOSES technology has revolutionized urology laser procedures by improving the clinical efficacy and efficiency for kidney stones. We are confident that Boston Scientific, as a global leader in urology, and our long-time commercial partner, is the best organization to carry this legacy forward.” 
 
The company expects to complete the transaction in the second half of this year.
 
References
¹ Durbin JM et al; Clinical Nephrology; V.77; 2012; p204; DOI:10.5414/CN107242.
² Jungers P et al; American Journal of Kidney Diseases; V.44; No.5; 11/04; p799.
³ Santos-Victoriano M et al; Clinical Pediatrics; V.37; 10/98; p583.
⁴ S. R. Khan, et al; Nature Reviews Disease Primers, vol. 2, p. 16008.