Healthcare Industry News: Conceptus
News Release - October 6, 2011
Conceptus(R) Acquires All Distribution Rights Related to the Essure(R) Procedure in the NetherlandsConceptus BV to Provide a Direct Sales Team to Further Accelerate Adoption of the Essure Hysteroscopic Sterilization Procedure
MOUNTAIN VIEW, California, October 6, 2011 -- (Healthcare Sales & Marketing Network) -- Conceptus, Inc. (Nasdaq:CPTS ), developer of the Essure® procedure, the most effective non-surgical permanent birth control method available, today announced that it has acquired from its Dutch distributor certain assets and all distribution rights of the Essure device for approximately $3.6 million. The purchase was made by Conceptus' newly-formed subsidiary in the Netherlands, Conceptus BV.
Conceptus BV will operate as a wholly owned subsidiary of Conceptus and its operating results will be consolidated within the Company's operating results for financial reporting purposes beginning in the fourth quarter of 2011. Conceptus BV will assume certain employees who will focus solely on the sales and customer support of the Essure device. The acquisition will enable the Company to recognize end-user sales pricing instead of distributor pricing, which is expected to generate incremental revenues and be accretive in 2012. Based on unit sales, the Netherlands is Conceptus' third largest European country market.
"The acquisition is consistent with our strategy to accelerate adoption of Essure. The Netherlands has a favorable reimbursement environment and solid progress has been made to date educating and training physicians and developing Essure sales across the country," said Mark Sieczkarek, president and chief executive officer of Conceptus. "The direct sales team will now focus 100% of its time on accelerating adoption of Essure, and our goal is to achieve standard of care in the Dutch permanent birth control market within the next two years."
About the Essure® Procedure
The Essure procedure, FDA approved since 2002, is the first permanent birth control method that can be performed in the comfort of a physician's office in less than 10 minutes (average hysteroscopic time) without hormones, cutting, burning or the risks associated with general anesthesia or tubal ligation. Soft, flexible inserts are placed in a woman's fallopian tubes through the cervix without incisions. Over the next three months, the body forms a natural barrier around and through the micro-inserts to prevent sperm from reaching the egg. Three months after the Essure procedure, a doctor is able to perform an Essure Confirmation Test to confirm that the inserts are properly placed and that the fallopian tubes are fully blocked, allowing the patient to rely upon Essure for permanent birth control.
The Essure procedure is 99.95% effective based on one year of follow up with zero pregnancies reported in clinical trials, making it the most effective form of permanent birth control on the market. The procedure is covered by most insurance plans, and when it is performed in a doctor's office the cost to the patient may be as low as a simple co-pay. Essure has been proven and trusted by physicians since 2002, with approximately 550,000 women worldwide having undergone the Essure procedure.
About Conceptus, Inc.
Conceptus, Inc. is a leader in the design, development, and marketing of innovative solutions in women's healthcare. The Company manufactures and markets the Essure procedure. The Essure procedure is available in the United States, Europe, Australia, New Zealand, Canada, Mexico, Central and South America and the Middle East. The Company also promotes the GYNECARE THERMACHOICE® Uterine Balloon Therapy System by ETHICON™ Women's Health & Urology, a division of Ethicon, Inc., in U.S. OB/GYN physician offices.
Please visit http://www.essure.com for more information on the Essure procedure. Patients may call the Essure Information Center at 1-877-ESSURE-1 with questions or to find a physician in their area.
Forward Looking Statements
Except for the historical information contained herein, the matters discussed in this press release include forward-looking statements, the accuracy of which is subject to known and unknown risks and uncertainties. These forward-looking statements include, without limitation, statements regarding the anticipated benefits of the acquisition, Conceptus BV's anticipated future operations and ability to increase market share in the Netherlands, our ability to secure government reimbursement in foreign countries, and the expected attainment of strategic initiatives intended to grow the business and make the Essure procedure the standard of care in the permanent birth control market. These discussions and other forward-looking statements included herein may differ significantly from actual results. Among other things, problems may arise with Conceptus' ability to successfully integrate the direct sales and customer support employees, which may result in Conceptus BV not operating as effectively and efficiently as expected and the acquisition may involve unexpected costs or unexpected liabilities. In addition, the business may be adversely affected by future legislative, regulatory, or tax changes as well as changes in international currency exchange rates and other economic, business and competitive factors.
Moreover, such differences may be based upon factors such as changes in strategic planning decisions by management, reallocation of internal resources, changes in the impact of global macroeconomic pressures, reimbursement decisions by insurance companies and foreign governments, scientific advances by third parties, litigation risks, and the introduction of competitive products, as well as those factors set forth in the Company's most recent Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q, and other filings with the Securities and Exchange Commission. These forward-looking statements speak only as to the date on which the statements were made. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
© 2011 Conceptus, Inc. - All rights reserved. Conceptus, Essure, Your Family is Complete, Your Choice is Clear are registered trademarks and service marks of Conceptus, Inc. Essure FlexPay and Essurance Promise are trademarks of Conceptus, Inc.
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