Boston Scientific Corporation (BSX) is currently in an acquisition spree, the latest being Boston based Intelect Medical for $78 million. Intellect is presently developing advanced neuromodulation technologies for deep brain stimulation (DBS) therapy. However, considering the company's current holding in Intelect, the total cash payment will sum up to around $60 million. While the deal is not expected to have any meaningful impact through 2013, it should be accretive to the bottom line thereafter. Earlier this week, Boston Scientific completed the acquisition of Sadra Medical, which is developing percutaneous aortic valves replacement to treat patients with severe aortic stenosis.

In the recent quarters, Boston Scientific has been making strategic acquisitions which should enable it to diversify its revenues. According to the company's estimates, globally the DBS market could exceed $1.5 billion by 2020 from the current level of $400 million. Intelect Medical's Guide DBS programming system along with Boston Scientific's Vercise DBS system, both currently under development, should enable the company to further grow its neuromodulation business. In order to realign its business the company recently sold its neurovascular unit for $1.5 billion to Stryker Corporation (SYK).

The Neuromodulation segment comprises Precision and Precision Plus Spinal Cord Stimulation (SCS) system for the treatment of chronic pain of the lower back and legs, and HiResolution 90K Cochlear Implant system to restore hearing for the profoundly deaf.  Neuromodulation devices focus on the treatment of auditory disorders and chronic pain, such as lower back pain, hearing loss, urinary incontinence, Parkinson's disease, tremors, and epilepsy.

During the last reported quarter, revenues from Neuromodulation increased 9% to $79 million. Growth benefited from an increase in implants and from the launch of four new products over the past 6 months.Procedure volumes grew 11%, partially due to the impact of the product launches capturing market share. However, management cautioned that they are witnessing softness in elective procedures which could negatively impact neuromodulation revenues.