Teleflex to pay $1.1B for NeoTract

Teleflex (NYSE:TFX) said today that it agreed to put up $1.1 billion to acquire NeoTract and its UroLift prostate treatment. The deal calls for an up-front cash payment of $725 million, plus another $375 million in milestone payments pegged to sales numbers through 2020, Wayne, Pa.-based Teleflex said. The deal is expected to close within 30 days. The UroLift system for benign prostate hyperplasia uses tiny devices that are inserted into the urethra in a minimally invasive procedure to reopen the lower urinary tract by pushing aside tissue from the enlarged prostate. NeoTract put up sales of roughly $51 million last year, up 178% over 2015, and is expected to post sales of $115 million to $120 million this year. “We are excited to announce this definitive agreement with NeoTract, as this combination is expected to solidify Teleflex’s ability to generate mid-single digit constant currency revenue growth for the next several years, as well as enhance Teleflex’s margin profile,” Teleflex chairman & CEO Benson Smith said in prepared remarks. “NeoTract is a truly unique company with a differentiated technology that targets a greater than $30 billion addressable market, and through their internally developed, patented UroLift system, have achieved sequential quarterly revenue growth of 20% or greater in 13 of the past 14 quarters. Importantly, while we believe NeoTract has compelling growth opportunities as they continue to penetrate the mark...
Source: Mass Device - Category: Medical Devices Authors: Tags: Mergers & Acquisitions Urology Wall Street Beat NeoTract Teleflex Source Type: news