Urotronic is a medical device company developing Optilume drug-coated balloon technology, a novel minimally invasive surgical therapy (MIST) that combines mechanical dilation with the delivery of paclitaxel to treat lower urinary tract symptoms (LUTS)
Laborie completes acquisition of Urotronic. (Credit: Robina Weermeijer on Unsplash)
US-based medical technology company Laborie Medical Technologies has completed its previously announced acquisition of Minnesota-based medical device company Urotronic.
Last month, Laborie signed a definitive agreement to purchase Urotronic for $600m.
Under the terms of the agreement, Urotronic will receive an upfront payment of $255m in cash and additional potential commercial milestone payments of up to $345m.
Laborie will make an upfront cash payment of $232m and potential milestone payments of up to $314m, net of existing minority investment in Urotronic.
As part of the acquisition, Urotronic and its employees will be fully transitioned into Laborie.
In addition, Laborie will also make a $5m strategic equity investment into GIE Medical.
GIE Medical is a spin-out of Urotronic, engaged in developing drug-coated balloon technology to treat strictures within the gastrointestinal tract.
Laborie Medical Technologies president and CEO Michael Frazzette said: “We are delighted to welcome the Urotronic team to Laborie, and we look forward to working together in our mission to deliver innovative technologies in the Interventional Urology space that preserve and restore human dignity.”
Urotronic president and CEO David Perry said: “Joining the Laborie team is an exciting new chapter for Urotronic. Over the last several years, we have seen our partnership develop because we are united on a goal to improve the standard of care for patients and commercialize Optilume products on a global stage.”
Urotronic is a medical device company currently developing its Optilume drug-coated balloon (DCB) technology, intended for urethral strictures and benign prostatic hyperplasia (BPH).
Optilume is a novel minimally invasive surgical therapy (MIST) that combines mechanical dilation with the delivery of paclitaxel to treat lower urinary tract symptoms (LUTS).
Laborie, a portfolio company of Patricia Industries, is a medical technology company focused on urology, urogynaecology, gastroenterology, obstetrics, gynaecology, and neonatal health.
Patricia Industries is a part of the industrial holding company Investor AB, which is owned by the Wallenberg Foundations, a collection of 16 non-profit foundations.
Piper Sandler served as the exclusive financial advisor to Urotronic, while Simpson Thacher & Bartlett and Cooley served as legal advisors to Laborie on the transaction.
Patricia Industries North America head Yuriy Prilutskiy said: “Patricia Industries is excited to continue supporting Laborie’s long-term growth with this acquisition, which aligns with our purpose of creating value for people and society by building strong and sustainable businesses.”