Cytyc Buys Contraceptive Product Maker

By: Ed Kensik

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Marlborough, MA-based Cytyc has bought privately-held Adiana for $215 million as a move to compliment its surgical products for endometrial ablation procedures.

The manufacturer of women’s health products will initially pay the Redwood City, CA-based manufacturer $60 million upfront. The deal also includes provisions for future milestone payments and a four-year earnout based on sales for Adiana’s non-incisional alternative to tubal ligation for permanent contraception in women. Total payments are not expected to exceed $215 million.

The market for Adiana’s product, if approved, is worth more than $1 billion, Cytyc said.

Earlier in the February the company said it would buy Sunnyvale, CA-based Adeza Biomedical Corp., which markets tests for risk of preterm birth and infertility. That deal, valued at about $452 million, is expected to close in March.

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