Minnesota-based Uroplasty (NSDQ:UPI) today said its shareholders and the stockowners of New York’s Vision-Sciences (NSDQ:VSCI) approved their pending merger and plan to re-brand as Cogentix Medical (NSDQ:CGNT).
Cogentix, which is slated to be based in Uroplasty’s home base of Minnetonka, Minn., said the deal is expected to close later this week.
"We are pleased with the outcome of today’s special meetings, and I would like to thank both shareholder groups for approving the merger agreement," Uroplasty president & CEO Rob Kill, who will have that role at Cogentix, said in prepared remarks. "Our shareholders have endorsed a transformative combination that will form a new medical device company well positioned for growth and value creation for our stakeholders."
"Our shareholders have voted to maximize the market opportunity for the EndoSheath technology and growth of our combined company, and we look forward to accelerating growth as one company," added Vision-Sciences president & CEO Howard Zauberman.
Uroplasty is known for products such as its Urgent PC neuromodulation system, which is FDA-cleared to treat overactive bladder. The company has had some success obtaining insurance reimbursement for Urgent PC. In February, for example, it won coverage from Independence Blue Cross, the largest insurance provider in South East Pennsylvania with coverage for 2.2 million people.
Beyond that, Uroplasty also brings its Macroplastique substance to the table, a bulking agent injected into the urethra to treat adult female stress urinary incontinence stemming from intrinsic sphincter deficiency.
Vision-Sciences, on the other hand, markets products used for flexible endoscopy procedures that have a sterile, disposable microbial barrier marketed under the EndoSheath name. While endoscopic procedures are used in many urological conditions, the idea is that the combined company will also advance the technology’s use into other specialties.
The price of joining forces will amount to a share exchange, with each outstanding share of Uroplasty common stock to be turned in for 3.6331 shares of Vision-Sciences’ common stock. Once everything closes, Uroplasty shareholders will own 62.5% of Cogentix, and Vision-Sciences shareholders get the other 37.5%, according to the deal announcement.
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