Laborie Medical Technologies has entered a definitive agreement for the acquisition of medical device company Urotronic in a deal valued at up to $600m.

As per the deal, Laborie will make an upfront cash payment of $255m to Urotronic.

Urotronic is entitled to receive potential commercial and reimbursement milestone payments of up to an additional $345m. 

The net value of the existing minority stake of Laborie in Urotronic will be $232m and the net upfront and milestone payments will be up to $314m.

The latest deal is part of Laborie’s strategy to strengthen its urology portfolio and is in line with the company’s plan to offer validated solutions to patients and physicians across the globe.

Urotronic’s Optilume paclitaxel drug-coated balloon technology is used in interventional urology, including for the treatment of urethral strictures and benign prostatic hyperplasia (BPH).

This technology offers a less invasive treatment option for several patients suffering from such ailments across the globe.

Laborie Medical Technologies president and CEO Mike Frazzette said: “There has never been a minimally invasive, combination drug-device therapy like Optilume before, leading to a highly disruptive paradigm change for physicians treating urethral strictures and BPH. 

“With this acquisition, we will continue to advance innovative technologies by meeting multiple unmet medical needs and, in doing so, provide solutions that preserve and restore human dignity.”

Laborie will also make an equity investment of $5m in Urotronic spin-out GIE Medical in tandem with the latest takeover.

GIE Medical is a clinical-stage company that focuses on the development of drug-coated balloon technology to treat strictures in the gastrointestinal tract, similar to Optilume.

In October 2020, Laborie and Urotronic announced a multi-faceted, strategic partnership.