Augmenix, a US-based radiation oncology technology producer backed by corporates Varian Medical Systems and Ascension Health, was acquired by medical devices maker Boston Scientifc on Thursday.
Boston Scientific will pay $500m in upfront cash and up to an additional $100m if Augmenix reaches sales-based milestones. The acquisition is expected to close in the fourth quarter of 2018 once it has cleared customary closing conditions.
Founded in 2008, Augmenix has developed an absorbable hydrogel, called SpaceOar System, that is injected prior to radiotherapy to create additional space between the rectum and prostate in order to reduce the required radiation dose.
Patients require only a single injection of the hydrogel to maintain the space for a standard treatment schedule of three months. The product is gradually absorbed by the body within six months.
SpaceOar has been used in more than 30,000 patients to date, having received regulatory approval in the US and the EU.
Augmenix most recently closed a $6m series E round in 2016 backed by unnamed existing investors, after Ascension Health Ventures (AHV), the strategic investment arm of care provider Ascension Health, led a $10.8m series D round in 2014.
The series D round also featured Excelestar Ventures, Catalyst Health Ventures and Sparta Group.
Oncology equipment maker Varian Medical Systems supplied $15m in 2011, after Augmenix had received $7.1m across two rounds backed by AHV, Catalyst Health Ventures, Pinnacle Ventures, Versant Ventures and founding investor Incept in 2008 and 2009.