Boston Scientific Corp. BSX said Tuesday it has entered an agreement to acquire Relievant Medsystems Inc., a privately held medical tech company that has developed a treatment for a form of chronic low back pain. Boston Scientific will pay $850 million upfront and additional but undisclosed contingent payments based on reaching certain sales goals over the next three years. Relievant has developed the Intracept (R) Intraosseous Nerve Ablation System to treat vertebrogenic pain, the only such treatment to win U.S. Food and Drug Administration approval for that condition. “The therapy uses targeted radiofrequency energy to stop the basivertebral nerve from transmitting pain signals to the brain and is designed to improve function and provide long-term relief,” the company said in a statement. About 5.3 million people living in the U.S. suffer from vertebrogenic pain. The deal is expected to close in the first half of 2024 and to generate sales of more than $70 million in 2023 and growth of more than 50% in 2024. The deal is expected to be immaterial to adjusted per-share earnings in 2024, slightly accretive in 2025 and increasingly accretive after that. The stock was up 0.9% premarket and has gained 14.6% in the year to date, while the S&P 500 SPX has gained 16%.

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