LABORIE to invest $15 million in Urotronic Series C financing along with the option to acquire Urotronic'sOptilume technology
Fremont, CA: Laborie Medical Technologies (LABORIE), a renowned diagnostic and therapeutic medical technology company, signed a definitive agreement for a multi-faceted, strategic partnership with Urotronic (Urotronic). This Minnesota-based healthcare devices company is presently conducting clinical trials to support the regulatory approval of Optilume, a drug-coated balloon (DCB) technology for application in urethral strictures and benign prostatic hyperplasia (BPH). Optilume was granted CE Mark approval for its use in urethral strictures recently.
The Optilume paclitaxel-coated balloon technology was designed in response to patient and physician dissatisfaction with solutions that currently exist for urethral strictures and BPH. The latest innovative, proprietary technology heralds a paradigm shift from the methods presently applied by urologists to treat such conditions. The technology provides a low cost, minimally invasive treatment alternative for millions of patients suffering from these complications globally.
According to the terms of the agreement, LABORIE is investing USD 15 million in Urotronic's Series C financing paired with USD 5 million from its current shareholders to secure an option for acquiring all rights to Optilume. Under the agreement terms, LABORIE has the opportunity to purchase a perpetual, exclusive license to the Optilume Urethral Strictures device technology, upon FDA approval, for a value of $165 million. LABORIE also has the option to acquire the entire Company, after the FDA approval of the Optilume BPH device, for $350 million upfront in addition to another $150 million in earnouts if special sales milestones are reached. This strategic partnership with Urotronic depicts LABORIE's continued commitment to expand the utilization of less invasive treatments and improve outcomes by large for patients undergoing treatment for 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."
