NeoTract, a US-based medical device manufacturer backed by pharmaceutical firm Johnson & Johnson, agreed to an acquisition by medical device maker Teleflex yesterday for a total consideration of $1.1bn.
Teleflex will pay $725m in cash upon closing of the deal, which is expected within 30 days subject to customary conditions. The remaining $375m will be paid dependent on certain commercial milestones related to sales through the end of 2020.
Founded in 2004, NeoTract has developed a minimally invasive device, UroLift, to treat lower urinary tract symptoms caused by an enlarged prostate gland, a condition known as benign prostatic hyperplasia (BPH).
Johnson & Johnson Development Corporation, a strategic investment arm of Johnson & Johnson, participated in a $28.1m funding round in 2009 alongside New Enterprise Associates and Quilvest Private Equity.
The company had raised approximately $58m in funding, according to deals database PitchBook.
Dave Amerson, president and chief executive of NeoTract, said: “We are excited to join the Teleflex organisation, which shares our vision for making UroLift the standard of care for BPH.
“Today’s announcement is a recognition of our focus on patient outcomes and the hard work and dedication of the entire NeoTract team.
“I want to especially thank Josh Makower, founder and chairman, Ted Lamson, founder and chief technical officer, and Joe Catanese, founder and vice-president of professional education, who took UroLift from concept to reality.
“We have tremendous respect for the Teleflex team and look forward to partnering with them to continue changing patient lives and delivering best-in-class revenue growth.”