China-based Acotec Scientific Holdings Ltd (HKG: 6669) has announced a cooperation framework and service framework agreement with US firm Boston Scientific Group plc (BSG, NYSE: BSX), outlining a series of collaborations on global commercialization, product manufacturing service, product research and development (R&D), and other areas over the next three years.
Expanding Global Reach and Cross-Selling Cooperation
The partnership builds on the exploration of cooperation opportunities that began in December 2022 when Boston Scientific took a majority ownership stake in Acotec in a deal worth USD 523 million. Under the agreement, both parties will implement a cross-selling cooperation mode in the China market, distributing each other’s products to reach more new customers and consolidate their cooperative relationship. In specific overseas markets, Boston Scientific has the exclusive right to distribute selected Acotec products, including peripheral drug coated balloons, peripheral thrombus aspiration systems, intracavitary radiofrequency ablation systems, and coronary PTCA balloon dilation catheters, among others. This will allow Acotec products to enter a broader global market, benefiting more patients.
Financial Terms and Transaction Limits
From 2023 to 2025, the upper limit of the transaction amount of Acotec’s purchase of Boston Scientific products for sales is set at USD 2 million per year. Concurrently, the upper limit of the transaction amount of Boston Scientific’s purchase of Acotec products for global marketing is USD 20 million for 2023, USD 50 million for 2024, and USD 110 million for 2025.
R&D and CSO Cooperation
Additionally, the two companies will carry out a series of cooperation in terms of R&D and Contract Sales Organization (CSO) services, providing research and development support to each other and sharing research and innovation resources. Acotec can leverage Boston Scientific’s global R&D network to strengthen its R&D capabilities, while Boston Scientific can rely on Acotec’s localization R&D advantages to improve R&D efficiency. The upper limit of the transaction amount involved in the R&D support and CSO services provided by Acotec to Boston Scientific from 2023 to 2025 is USD 60 million, USD 110 million, and USD 145 million, respectively. The upper limit of the transaction amount involved in the R&D support and CSO services provided by Boston Scientific to Acotec is USD 50 million, USD 90 million, and USD 120 million, respectively.-Fineline Info & Tech
