Boston Scientific Corp. said Wednesday that it is buying a Boston-based start-up firm that is developing new technologies for deep-brain stimulation.
Massachusetts-based Boston Scientific, which has substantial operations in Minnesota, said buying Intelect Medical Inc. will enhance its portfolio of medical devices that use electricity to stimulate different parts of the brain to treat various diseases and conditions.
Boston Scientific is paying $60 million in cash. It already had equity and debt positions in Intelect and said the transaction values the entire company at $78 million with no cash or debt on its balance sheet.
The current global market for deep-brain stimulation, which is dominated by Fridley-based Medtronic Inc., is roughly $400 million and is projected to grow to more than $1.5 billion by 2020.
Intelect Medical is developing a programming system that permits doctors to visualize which parts of the brain to best target for stimulation. Boston Scientific plans to pair that technology with its own Vercise deep-brain stimulation system, which is undergoing clinical trials for the treatment of Parkinson's disease.
Michael Onuscheck, president of Boston Sci's neuromodulation business, said in a statement that the acquisition is part of the company's "long-term strategy of enhancing our product portfolio and gaining market share."
Janet Moore • 612-673-7752
