Dive Brief:
- Boston Scientific has closed its acquisition of incontinence device maker Valencia Technologies, the company said on LinkedIn last week.
- The buyout gives Boston Scientific control of eCoin, a tibial nerve stimulator that competes with Medtronic’s Altaviva for the urge urinary incontinence market. Boston Scientific announced the deal in January.
- RBC Capital Markets analysts welcomed the deal in a note to investors in January, explaining that the takeover moves Boston Scientific into a high-growth area.
Dive Insight:
Valencia won premarket approval for eCoin in 2022. The device periodically stimulates the tibial nerve to regulate communication between the brain and bladder. Implanted near the ankle, eCoin helped 68% of participants in a pivotal trial to achieve at least a 50% reduction in urinary urge incontinence episodes.
Competition has intensified in recent years, with Bluewind receiving authorization for its Revi device in 2023 and Medtronic getting the green light to sell Altaviva last year. When Medtronic won approval, Leerink Partners analysts identified Altaviva’s battery life as an advantage over rival products. Medtronic CFO Thierry Piéton called urinary incontinence a “massive opportunity” at a Leerink event last month.
Boston Scientific will compete with Medtronic for the opportunity, leveraging commercial capabilities developed to support other urology products, such as its Axonics sacral neuromodulation system. Axonics treats overactive bladder and fecal incontinence.
RBC analysts said physicians they spoke with last year were “bullish” on Valencia’s eCoin. Writing after Boston Scientific disclosed the deal in January, the analysts said physicians “highlighted the growing traction of alternative treatments to sacral neuromodulation” and specifically called out eCoin. Work to develop the market could drive growth.
“[Boston Scientific] noted that [implantable tibial nerve stimulation] is poised to expand with significant near-term growth predicated on market development, reimbursement, and increased physician and patient education, leading to a sustained double-digit CAGR as adoption furthers,” the analysts said.
Boston Scientific noted that Valencia could deliver net revenue of $10 million in 2025 at a 20% year-over-year growth rate, according to the investor note. Because analysts believe the market is highly under-penetrated, there is scope for eCoin sales to keep rising under Boston Scientific’s ownership.
