Boston Scientific said on Monday that it has acquired Obsidio, a privately held maker of a technology used for embolization of blood vessels.
The companies didn’t disclose the amount of the deal. It’s the second acquisition in three months by Boston Scientific. It agreed to buy a majority stake in MITech for $230 million in June.
Obsidio developed the Gel Embolic Material (GEM) technology for embolization, procedures that block blood vessels. According to the National Cancer Institute, embolization uses particles to stop bleeding or halt the flow of blood to a tumor or abnormal area of tissue.
The GEM technology, which received 510(k) clearance from the Food and Drug Administration in July, is a gel-like material that physicians deliver through a catheter. Boston Scientific said in the announcement that the product is ready to use, shortening the preparation time for procedures.
“Unlike solid and liquid embolics that can take time to form an obstruction to blood flow, once placed, the GEM technology conforms to the targeted vasculature, immediately creating a barrier,” the company wrote in a statement.
Boston Scientific expects the transaction to be immaterial to its earnings per share in 2022.
RBC Capital Markets analysts wrote in a note that the acquisition “strengthens the company’s interventional oncology and embolization portfolio by adding a differentiated embolic technology.”
The analysts added that Boston Scientific plans to commercialize the GEM technology in the US in 2023.
The purchase continues Boston Scientific’s strategy for tuck-in deals. CFO Daniel Brennan told investors on a July 27 earnings call that tuck-in M&A remains the company’s top priority for capital allocation.
The medical device company was one of the most active in the industry last year with five acquisitions, including two deals valued at more than $1 billion.