Updated June 28, 2012, at 12:45 p.m. with comments from Medifocus.
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."
That $100 million figure is the sum of a series of payments made throughout the course of the companies’ relationship, Medifocus president & CEO Augustine Cheung told MassDevice.com in an email.
Medifocus and Celsion developed Prolieve and won pre-market approval from the FDA in 2005 with indication to treat benign prostatic hyperplasia.
"Boston Scientific was interested in the Prolieve technology and negotiated with Celsion to provide an up-front investment and licensing fees of $20 million in order to receive the rights to to purchase Prolieve from Celsion for $60 million after PMA has been received," Cheung told us. "After receipt of PMA, Celsion also co-launched Prolieve with Boston Scientific and received over $20 million as its share of marketing revenue until Boston exercised its rights to purchase Prolieve for $60 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 did not return requests for comment.