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Cogentix Medical, Inc., recently announced that it has entered into an exclusive license with Promepla, a Monaco-based medical device manufacturer, to launch an Endo-Urology product line in the United States. The product line is a full suite of endourological devices including ureteral access sheaths, gravity irrigation lines and nitinol guide wires that are highly complementary to the Company’s current urology product portfolio and will leverage Cogentix’s high performing commercial organization. The initial preparation for launch of the Cogentix-branded product line is underway and management expects the product line will generate revenue exceeding $2.5 million during 2018.
“The launch of our Endo-Urology product line in the U.S. is one of the first steps in executing our business development strategy,” said Darin Hammers, President & CEO of Cogentix. “Our primary focus for business development has been to add products that can immediately leverage the relationships our U.S. sales team has with their urology customers and the Endo-Urology product line perfectly meets this criteria. The substantial growth we have seen in our PrimeSight™ business demonstrates what our sales team can do with new and innovative products. This transaction is expected to further increase our strong urology product revenue growth rate, which was approximately 11 percent during the second quarter 2017. In addition, the structure of the license agreement we have announced today means that we continue to have $27 million in cash and investments for additional business development opportunities. We expect to complete at least one more transaction in the near term.”
Cogentix Medical also recently announced that it has acquired privately held Genesis Medical based in London, United Kingdom. The transaction is expected to generate incremental revenue to Cogentix during the second half of 2017 of approximately $0.8 million and over $2.0 million of incremental revenue in 2018. Genesis sells and markets a variety of products to urologists within the United Kingdom and has been the exclusive U.K. distributor of Cogentix’s PrimeSight™ endoscopy systems since 2013.
“The purchase of Genesis Medical is our second business development transaction this month and follows our announcement last week of an Endo-Urology product line launch in the U.S.,” said Darin Hammers, President & CEO of Cogentix. “Genesis has been our highly productive PrimeSight partner in the U.K. for the past four years, and they have exceptionally strong customer relationships in the British urology market. We believe that during the second half of this year our urology products revenue growth rate will exceed the first half’s 11 percent and Genesis will contribute to this acceleration.”
Under the terms of the acquisition agreement, Cogentix has purchased the tangible assets of Genesis and will pay up to £515,000 for the ongoing business, dependent on Genesis achieving certain revenue milestones through March of 2019. During 2016 Genesis Medical generated more than $3 million in total revenue and was profitable.
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The report covers the U.S. as a whole, as well as market segments for urinary incontinence devices, stone management devices, BPH treatment devices, urological endoscopes, prostate cancer treatment devices, urodynamic equipment, and nephrostomy devices. The iData series on the market for urological devices also covers the U.S., India, China, Japan, and 15 countries in Europe. Full reports provide a comprehensive analysis including units sold, procedure numbers, market value, forecasts, as well as detailed competitive market shares and analysis of major players’ success strategies in each market and segment.
