BioControl sells urology activity to AMS for $50m

The value of the deal may double following the receipt of performance-based royalties.

BioControl Medical (which also sells products under the name MedImpulse), has sold its urology activity to US medical device manufacturer American Medical Systems (Nasdaq: AMMD) for $50 million in cash. The deal was first reported by “Globes” in January. The value of the deal may double following the receipt of performance-based royalties, over the next 10 years.

Founded in 1999, BioControl develops active implantable devices that can affect the behavior of both muscles and nerves of the autonomic system. The company’s technology focuses on two primary fields, urological disorders and neurocardiological indications, which it will continue to develop after the sale of its urological activities.

American Medical Systems specializes in development, manufacture, and marketing of medical devices primarily for pelvic health, and is traded at value of $1.43 billion. BioControl received financing from Israeli venture capital firms Pitango Venture Capital, Vitalife Life Sciences Venture, Eucalyptus Ventures, Biomedical Investments, and Swiss venture capital firm HBM Bioventures.

Pitango general partner Ruti Alon, who manages the fund’s life science investment portfolio, said today that the sale represented a landmark achievement for both Pitango and BioMedical, which would continue developing applications for neurocardiological conditions. “Big companies no longer make acquisitions without thoroughly investigating the company they wish to buy. There is less willingness today to shell out hundreds of millions of dollars in cash, and deals are now based on both cash and future performance-related payments, such as the one we have reached for BioMedical. We hope this will be only the first stage, as this was an exit with excellent multiples.”

Published by Globes [online], Israel business news - - on April 27, 2006

© Copyright of Globes Publisher Itonut (1983) Ltd. 2006

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