Transaction demonstrates LABORIE's commitment to providing innovative solutions to urologists globally
LABORIE to invest $15 million in Urotronic Series C financing
LABORIE secures option to acquire Urotronic's Optilume™ technology
BURLINGTON, Mass., Oct. 8, 2020 /PRNewswire/ -- Laborie Medical Technologies Inc. (LABORIE), a leading diagnostic and therapeutic medical technology company, signed a definitive agreement today and entered into a multi-faceted, strategic partnership with Urotronic Inc. (Urotronic), a Minnesota-based medical device company currently conducting clinical trials to support regulatory approval of Optilume™, a drug-coated balloon (DCB) technology for use in urethral strictures and benign prostatic hyperplasia (BPH). Optilume™ was recently granted CE Mark approval for use in urethral strictures.
The Optilume™ paclitaxel-coated balloon technology was developed in response to patient and physician dissatisfaction with current solutions for urethral strictures and BPH. This innovative, proprietary technology represents a paradigm change from the methods currently used by urologists to treat these conditions and provides a low cost, minimally invasive treatment option for millions of patients suffering from these conditions globally.
Under the terms of the agreement, LABORIE will invest $15 million USD in Urotronic's Series C financing along with $5 million USD from current shareholders and secure an option to acquire all rights to Optilume™. Under the terms of the option agreement, LABORIE can acquire a perpetual, exclusive license to the Optilume™ Urethral Strictures device, upon FDA approval, for $165 million. LABORIE also has an option to acquire the Company, upon FDA approval of the Optilume™ BPH device, for $350 million upfront plus another $150 million in earnouts if certain sales milestones are reached. This strategic partnership with Urotronic demonstrates LABORIE's continued commitment to expand the use of less invasive treatments and improve outcomes for patients suffering from urological disorders.
"Optilume™ is a disruptive, minimally invasive technology that has the potential to change the standard of care for urethral strictures and for BPH. This innovative technology meets multiple unmet medical needs in the market, expands LABORIE's current urology offering, and aligns well with our desire to help clinicians improve their patients' lives," said Michael Frazzette, President & CEO, LABORIE. "With this investment, we are able to support innovation in the urology market and enhance our own product offering for physicians."
"We are excited to have LABORIE invest in our company and become a global distribution partner to commercialize our disruptive technologies," said David Perry, President & CEO, Urotronic. "Optilume™ offers physicians a device that has the potential to lift the burdens of current treatments. The investment by LABORIE, a leader in urology care globally, strengthens Optilume's position as a cutting-edge product in the urology device market."
"Over the last four years, Urotronic founder Lixiao Wang and his talented team have made impressive progress towards clinically documenting the performance of the Optilume™ technology. In the years ahead, patients all over the globe will have the opportunity to benefit from all the research, development and clinical effort that has been invested in this technology," said Doug Kohrs, Board Member, Urotronic.
"Patricia Industries is committed to supporting the LABORIE and Urotronic teams in their mission to bring Optilume™ to urologists and their patients around the world and help them overcome some of their greatest clinical challenges," said Yuriy Prilutskiy, Managing Director, Patricia Industries, a part of Investor AB. "This transaction further supports LABORIE's long-term growth and aligns with our organization's purpose of creating value for people and society by building strong and sustainable businesses."
ABOUT LABORIE MEDICAL TECHNOLOGIES
Globally headquartered in Boston, Massachusetts, LABORIE is a leading global developer, manufacturer and marketer of diverse, innovative medical technology used in the diagnosis and treatment of disorders in the urology, gynecology, colorectal, and gastrointestinal fields. With its recent acquisition of Clinical Innovations, LABORIE is also a leader in medical technology developed for Labor and Delivery and Neonatal Intensive Care. LABORIE is a portfolio company of Patricia Industries. For more information visit www.laborie.com.
ABOUT UROTRONIC INC.
Urotronic, Inc., headquartered in Plymouth, Minnesota, is a clinical-stage medical device company currently conducting clinical trials to support global commercialization of their products. The Optilume™ drug-coated balloon technology provides a low cost, minimally invasive treatment option for men suffering from urinary track conditions like benign prostatic hyperplasia (BPH) and urethral stricture. The prevalence of BPH and lower urinary tract issues rises markedly with increased age. BPH affects 70% of men 60-69 years of age and 80% of those 70 years of age or older. The drug-coated balloon technology under development creates a paradigm change from the methods currently used by urologists to treat these conditions. For more information on Urotronic and our products, please visit us at www.urotronic.com.
ABOUT PATRICIA INDUSTRIES
Patricia Industries, a part of Investor AB, makes control investments in best-in-class companies with strong market positions, brands and corporate cultures within industries positioned for secular growth. Our ambition is to be the sole owner of our companies, together with strong management teams and boards. We invest with an indefinite holding period and focus on building durable value and capturing organic and non-organic growth opportunities. For more information visit https://www.patriciaindustries.com/.
ABOUT INVESTOR AB
Investor, founded by the Wallenberg family in 1916, is an engaged owner of high-quality, global companies. We have a long-term investment perspective. Through board participation, as well as industrial experience, our network and financial strength, we work continuously to support our companies to remain or become best-in-class. Our holdings include among others ABB, Atlas Copco, Ericsson, Mölnlycke and SEB. For more information, visit www.investorab.com.
SOURCE LABORIE Medical Technologies