Original from: Medical Network Device
Laborie Medical Technologies has entered a definitive agreement for the acquisition of medical device company Urotronic in a deal valued at up to $600m.
As per the deal, Laborie will make an upfront cash payment of $255m to Urotronic.
Urotronic is entitled to receive potential commercial and reimbursement milestone payments of up to an additional $345m.
The net value of the existing minority stake of Laborie in Urotronic will be $232m and the net upfront and milestone payments will be up to $314m.
The latest deal is part of Laborie¡¯s strategy to strengthen its urology portfolio and is in line with the company¡¯s plan to offer validated solutions to patients and physicians across the globe.
Urotronic¡¯s Optilume paclitaxel drug-coated balloon technology is used in interventional urology, including for the treatment of urethral strictures and benign prostatic hyperplasia (BPH).
This technology offers a less invasive treatment option for several patients suffering from such ailments across the globe.
Laborie Medical Technologies president and CEO Mike Frazzette said: ¡°There has never been a minimally invasive, combination drug-device therapy like Optilume before, leading to a highly disruptive paradigm change for physicians treating urethral strictures and BPH.
¡°With this acquisition, we will continue to advance innovative technologies by meeting multiple unmet medical needs and, in doing so, provide solutions that preserve and restore human dignity.¡±
Laborie will also make an equity investment of $5m in Urotronic spin-out GIE Medical in tandem with the latest takeover.
GIE Medical is a clinical-stage company that focuses on the development of drug-coated balloon technology to treat strictures in the gastrointestinal tract, similar to Optilume.
In October 2020, Laborie and Urotronic announced a multi-faceted, strategic partnership.
