Boston Scientific to Acquire Nalu Medical for $533M, Expanding Neuromodulation Portfolio

Boston Scientific has announced its agreement to acquire Nalu Medical, a private company specializing in neurostimulation technology for chronic pain management. The deal, valued at $533 million, will see Boston Scientific purchase the remaining equity in Nalu Medical, building on their existing investment relationship that began in 2017.

Acquisition Details and Financial Implications

The acquisition, expected to close in the first half of 2026, values Nalu Medical at a total of $600 million. Boston Scientific forecasts that Nalu will surpass $60 million in sales for 2025, with projected year-over-year growth exceeding 25% in 2026. The company anticipates that the acquisition will be immaterial to adjusted earnings per share (EPS) in 2026, slightly accretive in 2027, and increasingly accretive thereafter.

Jim Cassidy, president of neuromodulation for Boston Scientific, emphasized the strategic fit of the acquisition, stating, "Adding the highly differentiated Nalu Medical technology complements our existing therapies—including spinal cord stimulation, basivertebral nerve ablation and radio frequency ablation—enabling us to deliver advanced pain relief options to a wider variety of patient populations."

Nalu Medical's Neurostimulation Technology

Nalu Medical's flagship product is a miniaturized neurostimulation implant designed to treat chronic pain. The device, which received FDA 510(k) clearance in 2019, consists of a small, battery-free pulse generator implanted under the skin and connected to the spinal cord or peripheral nerves with a thin electrical lead. The company claims the lead can last up to 18 years.

The system's power is supplied wirelessly through an externally worn rechargeable disc, which can be upgraded as needed. This innovative approach allows for a smaller implant size and potentially reduces the need for replacement surgeries.

Clinical Efficacy and Market Potential

A post-market observational study released by Nalu in November 2024 demonstrated promising results. After three months of treatment, 86% of users reported at least a 50% reduction in lower back and leg pain, while 54% of participants experienced pain relief scores of 80% or higher.

The acquisition of Nalu Medical aligns with Boston Scientific's strategy of expanding its neuromodulation portfolio through targeted investments and acquisitions. Analysts view the deal as a continuation of the company's approach to growth through tuck-in acquisitions, with RBC Capital Markets analyst Shagun Singh noting that Boston Scientific has completed over 40 deals in the past decade and maintains approximately 45 active investments in its venture capital portfolio.

As the medical device industry continues to evolve, Boston Scientific's latest acquisition positions the company to strengthen its presence in the growing market for non-opioid pain management solutions, addressing the needs of patients suffering from chronic peripheral nerve pain.