High-Profile Merger Hits a Regulatory Roadblock

Boston Scientific’s pending acquisition of Axonics has hit a regulatory roadblock.

The $3.7 billion deal was announced on January 8, and the companies had anticipated closing in the first half of the year. This week, however, the Federal Trade Commission (FTC) requested additional information from both companies.

The companies both expressed an intent to respond to the request promptly and to continue to cooperate with the FTC in its review of the merger. This development does, however, push the expected closing to the second half of the year.

This hiccup comes as a patent war between Axonics and Medtronic is heating up. Last month, Medtronic filed a complaint against Axonics with the U.S. International Trade Commission (ITC), along with a parallel lawsuit in U.S. District Court for the District of Delaware. These actions are an attempt to block Irvine, CA-based Axonics from importing and selling products that, according to Medtronic, infringe two of its patents related to the MRI compatibility of implantable medical devices.

The new accusations were soon followed by the Patent Trial and Appeal Board (PTAB) revising its earlier decision regarding two Medtronic patents. The PTAB invalidated some of Medtronic's patent claims and upheld others.