Coloplast announced today that it has completed the acquisition of Nine Continents Medical, Inc., an early stage company pioneering an implantable tibial nerve stimulation treatment for over-active bladder. The acquisition price consists of USD 145 million upfront cash payment and an additional contingent future milestone payment.
Founded in 2014, Nine Continents Medical, Inc. is a privately held company that has developed an innovative solution for over-active bladder (OAB), a condition characterized by a range of symptoms including the need to urinate more frequently, increased urgency, incontinence or leakage, and a need to urinate at night. The device is an implantable tibial nerve stimulator (ITNS), a miniaturized, self-powered unit placed in the lower leg under local anesthesia during a short, minimally invasive procedure. The solution requires no patient activation, recharging or recurring doctor visits, and builds on the clinically proven mode of action of percutaneous tibial nerve stimulation, which is an OAB treatment available on the market today.
Coloplast’s ambition is that clinical studies will demonstrate that patients receiving this solution can live a more normal life with significantly reduced symptoms. Coloplast expects to begin pivotal studies in 2021, with the ambition to obtain pre-market approval for a Class III device in the US and EU market approvals in the 2024-2025 timeframe.
Today, +80 million people globally suffer from OAB symptoms. About 40% of the OAB patient population seek treatment and of those about 3 million patients globally are candidates for 3rd line therapies like the solution developed by Nine Continents.
The acquisition of Nine Continents and entry into the OAB segment fits with Coloplast’s strategy to pursue organic and inorganic growth opportunities in the Interventional Urology business and aligns with Coloplast’s mission and strategic direction to bring innovative solutions to the market.
- “I am excited about the prospects of the Nine Continents device and pleased to confirm our commitment to the Interventional Urology business with this acquisition in the large OAB market. There is a large group of patients in the US and abroad suffering from OAB, and with Nine Continents’ innovative, minimally invasive device we hope to help these people live a better life,” says Kristian Villumsen, President and CEO of Coloplast.
The acquisition is debt financed using existing credit facilities, and Coloplast’s dividend policy is unchanged. The acquisition has no impact on Coloplast’s long-term guidance of 7-9% organic growth p.a. and more than 30% EBIT margin in constant currencies. Operational costs until commercialization are included in Coloplast’s annual incremental commercial investments of up to 2% of revenues.
Caution: Investigational Device. Not approved for sale in any jurisdiction.
Piper Sandler & Co. is serving as financial advisor to Coloplast and Davis Polk & Wardwell LLP is serving as legal counsel.
About Coloplast
Danish medical device company Coloplast develops products and services designed to make life easier for people with intimate health conditions. Coloplast listens to end-users to better understand their needs and responds by bringing the best ideas to market in the form of medical devices and service solutions.
Learn more on www.coloplast.us/about-coloplast
For questions about the transaction, please contact
Ellen Bjurgert, Vice President, Investor Relations
+45 49 11 33 76
dkebj@coloplast.com
For general media inquiries, please contact
Lina Danstrup, Senior Media Relations Manager
+45 4911 2607
Attachment
