Boston Scientific acquires Medtronic’s neuromodulation competitor

Boston Scientific has completed its $3.7 billion acquisition of Axonics, a company specialising in medical devices to treat urinary and bowel dysfunction. The acquisition marks a significant move in the competitive neuromodulation market, where Axonics has been a rising player.

Axonics, which gained FDA approval in 2019 for a rechargeable version of its sacral neuromodulation device, has been a formidable competitor to Medtronic, the pioneer of the market with its InterStim system. This rivalry included a longstanding patent dispute between the two companies.

In September, Axonics secured regulatory approval in Australia for its next-generation R20 rechargeable sacral neuromodulation system, which targets patients suffering from overactive bladder and faecal incontinence.

The R20 system, designed to function in the body for at least 20 years, has significantly reduced charging frequency – requiring recharging only once every 6–10 months for about an hour. Commercial promotion of the device to local clinicians was set to commence this month.

Boston Scientific first announced the Axonics deal in January 2024. While awaiting regulatory approval for the acquisition, the company closed its $1.28 billion equity-value acquisition of Silk Road Medical and, in November, agreed to purchase Cortex, a diagnostics company specialising in diagnostic imaging tools to detect atrial fibrillation (AF).

Axonics has shown impressive revenue growth, generating $322.2 million in the first three quarters of 2024, compared to $256.6 million during the same period in 2023. Despite this growth, the company continues to face a net loss of $12.2 million for the first nine months of the year. In previous years, Axonics reported net losses of $6.1 million in 2023 and $59.7 million in 2022.

Significant leadership changes also accompanied the acquisition’s closure. All members of Axonics’ board of directors stepped down, and executive roles, including that of CEO, were terminated as part of the agreement.

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