Urethral Stricture

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.”

Urotronic joins Laborie as part of a long-term growth strategy for the Portsmouth-based medical device company. Urotronic's Optilume® BPH Catheter System, a unique minimally invasive surgical therapy (MIST), is a paradigm shift for patients and clinicians in global interventional urology. PORTSMOUTH, N.H., Oct. 27, 2023 /PRNewswire/ -- Leading diagnostic and therapeutic medical technology company, Laborie Medical Technologies Corp. (Laborie), announced that it has completed the acquisition of Urotronic, Inc. (Urotronic), a private medical device company that developed Optilume® drug-coated balloon technology used in interventional urology to treat urethral strictures and benign prostatic hyperplasia (BPH) or enlarged prostate conditions. Urotronic and its employees will be fully integrated into the Laborie business as part of the transaction. "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," said Michael Frazzette, President & CEO of Laborie Medical Technologies. "Joining the Laborie team is an exciting new chapter for Urotronic," says Urotronic President & CEO David Perry. "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." "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," said Yuriy Prilutskiy, Head of North America at Patricia Industries, a part of Investor AB, and owner of Laborie Medical Technologies. 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) secondary to urological stricture or BPH. Optilume products have been approved by the U.S. Food and Drug Administration (FDA) and received the CE mark. For more information, visit Optilume.com/BPH Advisors Piper Sandler acted as the exclusive financial advisor to Urotronic. Simpson Thacher & Bartlett LLP and Cooley LLP acted as legal advisors to Laborie. About Laborie Medical Technologies Headquartered in Portsmouth, New Hampshire, Laborie is a global medical technology company focused on Urology, Urogynecology, Gastroenterology, Obstetrics, Gynecology & Neonatal Health. We manufacture and deliver high-quality, high-impact diagnostic and therapeutic products that help clinicians and hospitals preserve and restore patient dignity. Clinicians and hospitals look to us as the market-leading experts in our business segments, and we support our products with a world-class clinical education & information program. Laborie is a portfolio company of Patricia Industries. For more information visit . About Urotronic Inc. Urotronic, Inc., headquartered in Plymouth, Minnesota, is a medical device company currently conducting clinical trials to support global commercialization of their products. The Optilume® drug-coated balloon technology provides a minimally invasive treatment option for men suffering from urinary tract conditions like urethral strictures and benign prostatic hyperplasia (BPH). The drug-coated balloon technology 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 . About Patricia Industries Patricia Industries is a long-term owner that invests in companies and works to develop each company to its full potential. Patricia Industries is a part of the industrial holding company Investor AB, whose main owner is the Wallenberg Foundations. About Investor AB Investor, founded by the Wallenberg family in 1916, is an engaged owner of high-quality, global companies, with a long-term investment perspective. Through board participation, industrial experience, global network and financial strength, Investor works continuously to support its companies to remain or become best-in-class. SOURCE Laborie Medical Technologies

After taking a prior stake in its latest quarry, Laborie Medical Technologies is getting back in line for another go-round by signing on to make a $5 million equity investment in a Urotronic spinout. Laborie Medical Technologies has taken another step in a steady cadence of acquisitions, picking up prostate balloon treatment maker Urotronic in a deal worth up to $600 million. The transaction includes an upfront cash payment of $255 million, with a potential $345 million more tied to commercial milestones and future reimbursement coverage. Laborie previously made a minority investment in the Minnesota-based device developer; minus the recovery of its prior stake, those numbers drop to $232 million and $314 million, respectively, according to the company. But why stop there? Laborie is also getting back in line for another go-round by signing on to make a $5 million equity investment in a Urotronic spinout. GIE Medical aims to translate Urotronic’s Optilume drug-coated balloon approach into a treatment for benign strictures of the gastrointestinal tract, including narrowings of the esophagus, small intestine and bowels. Optilume received a clearance from the FDA this past July as an outpatient procedure to treat benign prostatic hyperplasia, the condition better known as BPH. It employs a paclitaxel-laden balloon that inflates and expands across two sections to widen the urinary tract, relieving the symptoms of a swelling prostate without the need for surgically altering tissue or the placement of a permanent implant. “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,” Laborie President and CEO Mike Frazzette said in a statement. The Urotronic buy follows multiple additions to Laborie’s device portfolio in the past 18 months—including February’s acquisition of Novonate and its NICU-focused LifeBubble system for umbilical catheters, as well as April 2022’s purchase of GI Supply and its portfolio of endoscopy products, both for undisclosed amounts. Prior to that, the company acquired Pelvalon in October 2021, with its Eclipse system for women experiencing fecal incontinence.