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.