Dive Brief:
- Boston Scientific received a second request for information on Wednesday from the Federal Trade Commission about its proposed $3.7 billion acquisition of Axonics.
- The request extends the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act until 30 days after both Boston Scientific and Axonics have complied, unless the waiting period is extended voluntarily by the companies or terminated earlier by the FTC.
- As a result, Boston Scientific now expects the merger to be completed in the second half of 2024, a delay from its initial target for closing the deal in the first half of the year, the company disclosed in a regulatory filing.
Dive Insight:
Boston Scientific’s plan to buy Axonics, a maker of devices to treat urinary and bowel dysfunction, is so far the year’s biggest medtech deal. The agreement was revealed in early January and approved by Axonics’ shareholders last month.
Analysts said Axonics’ product lines would complement Boston Scientific’s urology business, which accounted for about 14% of the company’s estimated sales last year. The acquisition would give Boston Scientific an opportunity in the high-growth sacral neuromodulation market, where it would compete with Medtronic.
Antitrust experts cautioned last month that the proposed deal was likely to be scrutinized by the FTC because the companies are the dominant providers of some treatments for urinary incontinence, Bloomberg reported.
When the merger was announced, Boston Scientific said Axonics’ revenue growth profile was expected to be highly accretive to its urology business in 2024 and accretive to its adjusted earnings per share after this year.
With the FTC requesting additional information, it could now take longer to complete the deal and realize its benefits. Both companies expect to respond promptly to the FTC’s request and continue to cooperate with the regulator, Boston Scientific said.