Coloplast (CPH:COLO-B) officials have decided to keep the company’s interventional urology business — about five months after confirming it was the subject of a strategic review.
“After completing a thorough review, we have firmly concluded that the interventional urology business is core to our mission, and that retaining the business is the right decision to deliver continued shareholder value creation. Fundamentally, we observe large, fast-growing markets and real unmet clinical needs representing long-term growth opportunities,” CEO Kristian Villumsen said in a news release today.
“Today, the business delivers strong growth and profitability, which is a good outset from which to invest and develop the business further, to derive even greater long-term value,” Villumsen said.
The division enjoyed 10% organic growth during the fiscal year ended Sept. 30, more than any other division in the company. But there were also apparently concerns. The strategic review announcement in June came about two months after the U.S. FDA ordered Coloplast and Boston Scientific (NYSE:BSX) — the only two companies still selling surgical mesh for transvaginal repair of pelvic organ prolapse — to stop selling the devices. Transvaginal mesh came under scathing criticism last year from reports including Netflix’s “The Bleeding Edge” documentary and the International Consortium of Investigative Journalists’ Implant Files.
Coloplast today said it was setting aside the equivalent of more than $60 million to cover potential settlements in vaginal mesh cases.