Boston Scientific sells Prolieve device back to Medifocus for $5M
Boston Scientific sells the Prolieve benign prostatic hyperplasia treatment system back to Medifocus in a deal worth up to $5 million.
Boston Scientific purchased the Prolieve technology, which uses microwave heating and dilation to treat enlargement of the male prostate gland, from Medifocus in June 2009 for a total of $60 million.
Prolieve was originally developed and commercialized within Medifocus and sold to Boston Scientific through Medifocus subsidiary Celsion Corp. (NSDQ:CLSN).
The sale was a pivotal one for Medifocus, which touted in various marketing materials that it "worked together in Celsion for over 20 years, and successfully developed and commercialized the 'Prolieve Thermodilatation System' for BPH with Boston Scientific as strategic partner and sold the BPH product to Boston Scientific for a return of over $100 million."
Medifocus will repurchase the Prolieve business for an up-front payment of $2.5 million upon closing the deal, with the remaining $2.5 million to be paid in quarterly installments based on sales performance, according to a press release.
Medifocus will acquire all Prolieve inventory, mobile distribution assets and a family of intellectual property associated with the device, pending approval of the transaction which is expected to close within 30 days.
BSX shares were up 1.8% to $5.62 as of about 12:45 p.m. today.
Representatives for Boston Scientific and Medifocus did not return requests for comment.