Globe Newswire07.10.17
Entellus Medical Inc., a medical technology company focused on delivering minimally invasive ENT procedures, announced that it has entered into a definitive agreement to acquire Spirox Inc., a privately-held ENT medical technology company that develops, manufactures, and markets the LATERA Absorbable Nasal Implant, a minimally invasive option for ENTs and facial plastic surgeons to treat nasal airway obstruction. The company also announced preliminary second quarter 2017 revenue results and updated full year 2017 revenue guidance.
Under the terms of the agreement, Entellus has agreed to acquire Spirox for $25 million in cash and 3.4 million shares of Entellus common stock, plus additional contingent payments over four years based on revenue growth.
"We are excited to announce this significant transaction. We believe this combination will enhance the near and long-term growth potential of our business and bolster our strategy to deliver less invasive treatment options to ENTs while driving procedure volumes to more cost efficient care settings," said Robert White, president and chief executive officer of Entellus. “Nasal airway obstruction impacts as many as 20 million people in the US with nearly one million people undergoing some type of surgical procedure each year. Of surgically treated nasal obstruction patients, over 70 percent may benefit from lateral wall interventions and can be effectively treated with the LATERA implant.”
Mr. White continued, “We look forward to working with the entire Spirox team to advance our technologies and the addition of both Duke Rohlen, president and chief executive officer of Spirox, and Jim Momtazee, a current director of Spirox and head of KKR’s Health Care Industry Team—Americas, to Entellus’ board of directors.”
"Entellus and Spirox are two entrepreneurial companies that share a strong strategic focus on providing better experiences for physicians and patients with innovative and less invasive technologies in the ENT sector,” said Duke Rohlen, chief executive officer of Spirox. “We look forward to combining our complementary expertise and capabilities for the benefit of our shared customers, patients, employees and shareholders."
The transaction is subject to customary closing conditions, including the approval of the transaction by Spirox’s stockholders. The transaction is expected to close early in the third quarter of 2017.
Following FDA clearance, LATERA was commercially introduced mid-2016, and has generated over $6 million in cumulative revenue. Entellus expects the LATERA product will continue to grow at a compounded growth rate of over 40 percent through 2020.
Under the terms of the agreement, Entellus has agreed to acquire Spirox for $25 million in cash and 3.4 million shares of Entellus common stock, plus additional contingent payments over four years based on revenue growth.
"We are excited to announce this significant transaction. We believe this combination will enhance the near and long-term growth potential of our business and bolster our strategy to deliver less invasive treatment options to ENTs while driving procedure volumes to more cost efficient care settings," said Robert White, president and chief executive officer of Entellus. “Nasal airway obstruction impacts as many as 20 million people in the US with nearly one million people undergoing some type of surgical procedure each year. Of surgically treated nasal obstruction patients, over 70 percent may benefit from lateral wall interventions and can be effectively treated with the LATERA implant.”
Mr. White continued, “We look forward to working with the entire Spirox team to advance our technologies and the addition of both Duke Rohlen, president and chief executive officer of Spirox, and Jim Momtazee, a current director of Spirox and head of KKR’s Health Care Industry Team—Americas, to Entellus’ board of directors.”
"Entellus and Spirox are two entrepreneurial companies that share a strong strategic focus on providing better experiences for physicians and patients with innovative and less invasive technologies in the ENT sector,” said Duke Rohlen, chief executive officer of Spirox. “We look forward to combining our complementary expertise and capabilities for the benefit of our shared customers, patients, employees and shareholders."
The transaction is subject to customary closing conditions, including the approval of the transaction by Spirox’s stockholders. The transaction is expected to close early in the third quarter of 2017.
Following FDA clearance, LATERA was commercially introduced mid-2016, and has generated over $6 million in cumulative revenue. Entellus expects the LATERA product will continue to grow at a compounded growth rate of over 40 percent through 2020.