Teleflex has completed the previously announced acquisition of US-based medical equipment manufacturer NeoTract for approximately $1.1bn.
As part of the deal, Teleflex bought NeoTract for an upfront cash payment of $725m at closing, and up to an additional $375m after the achievement of select commercial milestones associated with sales until the end of 2020.
Teleflex will have access to NeoTract’s FDA-cleared UroLift System, a minimally invasive technology developed to treat lower urinary tract symptoms caused by benign prostatic hyperplasia (BPH).
Through a transurethral outpatient procedure, UroLift delivers permanent implants to hold open the urethra and to minimise prostate obstruction without cutting, heating or removing the prostate tissue.
Teleflex offers solutions in the fields of vascular and interventional access, surgical, anaesthesia, cardiac care, urology, emergency medicine, and respiratory care.
The Teleflex family consists of Arrow, Deknatel, Hudson RCI, LMA, Pilling, Rusch, and Weck brands.
The addition of NeoTract is expected to improve Teleflex’s presence in the urological market as UroLift is used to address a significant medical issue and targets a total addressable $39bn market.
Since receipt of CE-Mark in 2010 and de novo 510(k) in 2013, UroLift has been the subject of a significant number of studies, including two randomised clinical trials, seven open-label studies, and three meta-analyses.
The system also has broad, sustainable reimbursement in place, including dedicated category 1 CPT codes specific to the UroLift System procedure and is 100% covered by Medicare Administrative Contractors, which translates to approximately 174 million lives in the US.