Nxthera Inc

Market position

NxThera competed in the minimally invasive therapy (MIT) segment for BPH, described by Boston Scientific as the fastest growing category in BPH treatment, positioning steam ablation as an alternative to surgery and drug therapy. Boston Scientific's existing BPH portfolio at the time of acquisition included the GreenLight XPS Laser Therapy system and holmium laser platforms.

The company positioned Rezum as a minimally invasive, office-based alternative to BPH surgery and medications, citing three-year results from a 197-patient trial showing durable symptom relief, no latent adverse events, no de novo erectile dysfunction and a 4.4% re-treatment rate.

Technology

Convective Water Vapor Energy (WAVE) technology, delivered via the Rezum system, injects sterile water vapor (steam) into prostate tissue to ablate excess tissue in a minimally invasive procedure that can be performed in a physician's office. The platform was also under investigation for urologic oncology applications.

Go-to-market

Direct commercial sales in the U.S. through its own sales force, which the company said it more than doubled after its first year of commercial launch, supported by clinical evidence generation and the Rezum Center of Excellence program recognizing high-volume urologists.

Urologists and other clinicians treating endourological conditions, including office-based urology practices, ambulatory surgery centers and specialized clinics; end patients are men with symptomatic BPH, a condition affecting more than 12 million men in the U.S. according to the company's CEO.

Geography

Headquartered in Maple Grove, Minnesota, with commercial activity in the United States and CE mark approval enabling European Union sales; approximately 75 employees reported across North America by a third-party data provider.

History

Founded in 2008 in Maple Grove, Minnesota, NxThera operated as a research and development enterprise in its early years, adding commercial staff from 2012 onward. It obtained CE mark approval in 2013 and FDA 510(k) clearance in August 2015, then raised successive venture rounds, including a $40 million round led by Boston Scientific in December 2015 and $15.3 million from existing investors in March 2017. Boston Scientific acquired the company in 2018 for up to $406 million.

Risks & controversies

The company operated in a funding environment that its CEO and local press described as increasingly difficult for medical device startups, and was pursuing additional financing at the time of its March 2017 round. Boston Scientific stated the acquisition was expected to be immaterial to adjusted earnings per share until the end of 2020, and milestone payments were contingent on future performance.