On November 15, local time, Boston Scientific announced the completion of its acquisition of medical technology company Axonics, Inc. The transaction was priced at $71 per share, with an equity value of $3.7 billion (equivalent to approximately RMB 26.76 billion). Boston Scientific expects that the transaction will have little impact on adjusted earnings per share in 2024 and 2025, and will increase thereafter.

Axonics focuses on the development and commercialization of differentiated devices for the treatment of urinary and intestinal dysfunction. Its core products include sacral nerve modulation systems and urethral swelling hydrogels. Axonics is an important competitor of Medtronic in the field of sacral nerve modulation. This field was previously an absolute dominance of Medtronic. After the approval of Axonics products, it gradually expanded its market territory. Data shows that the company has a 27% market share in the sacral nerve modulation market. Axonics ranked second in the list of the fastest growing companies in the Americas in 2023 published by the Financial Times.

The company's latest financial report shows that Axonics continued to maintain revenue growth in the third quarter of 2024, with net income of US$116 million, a year-on-year increase of 25%. Among them, sacral nerve regulation revenue was US$92.3 million, a year-on-year increase of 25%; Bulkamid revenue was US$23.8 million, a year-on-year increase of 25%. The gross profit margin was 77.2%, compared with 74.2% in the same period last year. The sacral nerve stimulator (SNM) is a neuromodulatory medical device. Its neurostimulator and wires will be implanted in the body to stimulate the sacral nerves, so that the nerve signals between the bladder and the brain or between the intestines and the brain can be conducted normally. In clinical practice, sacral nerve stimulators are mainly used to treat urinary-related diseases, such as moderate to severe overactive bladder.

As early as January this year, Boston Scientific announced that it had signed a final agreement to acquire Axonics, Inc. At that time, Boston Scientific expected to complete the acquisition in the first half of this year. However, the completion of the transaction was delayed due to the Federal Trade Commission's request for more information about the acquisition. "Over the past decade, Axonics has provided impressive and meaningful innovations for patients with overactive bladder and urinary incontinence," said Meghan Scanlon, senior vice president and president of urology at Boston Scientific. "We are pleased to welcome the Axonics team to Boston Scientific through the completion of this acquisition. The addition of the Axonics portfolio allows us to expand into sacral neuromodulation, a high-growth area of our urology business, while bringing a comprehensive portfolio to patients around the world who are seeking tailored treatment options based on their life stage and the severity of their incontinence."

According to the company's financial report, Boston Scientific's net sales in Q3 2024 were $4.209 billion, a reported growth rate of 19.4% and an organic growth rate of 18.2% compared with the same period last year. Among them, urology revenue was $532 million, a reported growth of 10.3%; neuromodulation revenue was $268 million, a reported growth of 17.0%.

Neuromodulation technology can excite, inhibit or regulate neurons or neural signal transduction in adjacent or distant parts of the central nervous system, peripheral nervous system and autonomic nervous system, thereby achieving the purpose of improving patients' quality of life and improving neurological function. Neuromodulation medical devices mainly include deep brain stimulation system (DBS), sacral nerve stimulation system (SNM), vagus nerve stimulation system (VNS), and spinal cord stimulation system (SCS).
According to Mordor Intelligence data, the neuromodulation market size is estimated to be US$6.12 billion in 2024 and is expected to reach US$9.26 billion in 2029, with a compound annual growth rate of 11.20% from 2024 to 2029.

In recent years, neuromodulation technology has achieved rapid development and has been gradually applied to more disease diagnosis and treatment fields. On the corporate side, Medtronic, as one of the earliest equipment companies to expand in this field, currently has layouts in many fields such as DBS, VNS, SCS, and SNM. In addition, multinational giants such as Boston Scientific, Abbott, and LivaNova are also important competitors in the field of neuromodulation. Last year, Boston Scientific acquired the US medical technology company Relievant Medsystems for US$850 million. The latter has the only FDA-approved system for the treatment of discogenic pain, which will enhance Boco's competitiveness in the field of chronic pain treatment.

In September this year, Abbott announced that it had launched a key clinical trial called the TRANSCEND study to evaluate the company's deep brain stimulation (DBS) system's control effect on refractory depression. The US FDA has granted the system the title of breakthrough device to speed up the review of its innovative technology.
In the domestic market, foreign-funded enterprises have accelerated the introduction of innovative neuromodulation products into China. At the same time, a number of domestic companies such as Pinchi Medical and Jingyu Medical have promoted the research and development and commercialization of neuromodulation products.
This month, Boston Scientific's "implantable deep brain neurostimulation electrode" was approved for NMPA innovative product registration application for auxiliary treatment of symptoms of mid-to-late levodopa-responsive Parkinson's disease. In May, NMPA approved Pinchi Medical's implantable deep brain electrical stimulation electrode lead kit and other four innovative product registration applications, which is also the first domestically produced directional deep brain electrical stimulation product. The confrontation in the neuromodulation market will continue.

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