What's Happening?
Boston Scientific Corporation has announced a definitive agreement to acquire Nalu Medical, Inc., a company specializing in innovative and minimally invasive solutions for chronic pain management. The
acquisition involves an upfront cash payment of approximately $533 million for the remaining equity not already owned by Boston Scientific. Nalu Medical's flagship product, the Nalu Neurostimulation System, is designed to provide targeted relief for chronic pain through peripheral nerve stimulation. This system, which received FDA clearance in 2019, uses mild electrical impulses to interrupt pain signals before they reach the brain. The acquisition is expected to be completed in the first half of 2026, pending customary closing conditions.
Why It's Important?
This acquisition is significant as it enhances Boston Scientific's portfolio in the neuromodulation market, particularly in addressing chronic pain, a condition affecting millions of Americans. By integrating Nalu Medical's technology, Boston Scientific aims to offer a broader range of pain relief options, complementing its existing therapies such as spinal cord stimulation and radiofrequency ablation. The deal is expected to drive growth, with Nalu projected to generate over $60 million in sales in 2025 and achieve more than 25% growth in 2026. This move could potentially improve patient outcomes and reduce healthcare costs by providing more effective pain management solutions.
What's Next?
Following the acquisition, Boston Scientific plans to integrate Nalu Medical's operations and technology into its existing framework. The company anticipates that the transaction will be slightly accretive to adjusted earnings per share by 2027 and increasingly accretive thereafter. On a GAAP basis, the transaction may initially be dilutive due to amortization and acquisition-related charges. The successful integration of Nalu's technology could lead to further innovations in pain management and expand Boston Scientific's market share in the neuromodulation sector.
