Medtech company acquisition to fill obesity market gap

MedTech News: It is projected that by 2025 around 83% of Australian men and 75% of women aged 20 years and over will be overweight or obese, as well as one-third of 5-19 year olds. This equates to 16.9 million Australians.

Novo Nordisk has reported continued challenges in meeting demand for its obesity drug Wegovy and its diabetes medicine Ozempic, containing the same active ingredient semaglutide.

Boston Scientific’s move to acquire Apollo Endosurgery, for approximately $615 million, aims to fill the gap in the obesity market.

Boston Scientific is already among the leading companies within the endoscopic devices market for performing a variety of gastrointestinal surgeries, and Apollo Endosurgery also has a robust endoscopy product portfolio. Additionally, Apollo Endosurgery has historically been the leader of the gastric balloon market, as it has successfully marketed its Orbera System.

As Boston Scientific has yet to market bariatric devices, this acquisition will propel the company into the gastric balloons market which still play an important role in surgically treating obesity. 

Analysts appeared upbeat about the acquisition as it will strengthen Boston Scientific’s GI portfolio, expand the company’s reach into an $800M endoluminal surgery market opportunity and the rapidly growing bariatric surgery segment.

Boston Scientific expects to complete the transaction in the first half of 2023.

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