NEA Backed NeoTract Acquired by Teleflex
Posted on September 05, 2017 by Medtech[y] Staff
Serial entrepreneur and NEA General Partner, Josh Makower, hit another home run today when Teleflex acquired NeoTract, the company he co-founded with Ted Lamson.
The Teleflex acquisition of NeoTract adds to an impressive list of companies sold by Makower's incubator, ExploraMed.
The terms of the deal could reach up to $1.1 billion, with Teleflex making an upfront payment of $725 million at closing and up to an additional $375 million upon the achievement of 2018 through 2020 commercial sales milestones.
And sales are seriously impressive for a start-up, far surpassing many single product companies at similar stages. NeoTract has achieved 13 of 14 consecutive quarters of ≥ 20% sequential revenue growth.
NeoTract Revenue breakdown:
- 2015 revenue of approximately $18 million
- 2016 revenue of approximately $51 million
- 2017 revenue estimated to be between $115 to $120 million
- 2018 revenue expected to grow at least 40% over 2017 levels
The revenue has come from their flagship product, UroLift, which received CE Mark in 2010 and de novo 510(k) in 2013. Additionally, NeoTract has achieved broad and sustainable reimbursement for UroLift with a dedicated Category 1 CPT code in January of 2015 and 100% coverage by Medicare.
What is UroLift?
The UroLift System is a novel, minimally invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia, or BPH, which is an age- related male condition that results in a larger than usual prostate that squeezes the urethra.
The UroLift permanent implants, delivered during a transurethral outpatient procedure, relieve prostate obstruction and open the urethra directly without cutting, heating, or removing prostate tissue.
- 9 studies, including two randomized studies
- 23 peer-reviewed publications, including multiple meta-analyses
- Over 1,000 patient 5 year follow-up data
According to NeoTract's internal data, there is a $30 billion market opportunity for UroLift in the U.S. There are 12 million men in the U.S. being actively managed for BPH, with 8.5 million of those men on medicine or who've dropped out of taking medication for BPH. These 8.5 million men make up UroLift's target market.
NeoTract currently has ~70 direct sales reps in the U.S. and they have a direct competitor, NxThera, who sell a device called Reżum. You can see NxThera's device in action here:
NxThera is privately held so no sales numbers are available. They are backed by a number of venture partners, including a Series D backed by Boston Scientific.