Advanced Imaging

AdvancedImagingPro.com

   

Industry News

Updated: July 8th, 2008 05:26 PM CDT

Laserscope Announces Acquisition of Fiber Optics Manufacturer InnovaQuartz, Inc.

Advertisement
via PRNewswire

SAN JOSE , Calif., May 1 /PRNewswire-FirstCall/ -- Laserscope(Nasdaq: LSCP), a leader in the development and commercialization of minimally-invasive medical devices, including medical lasers and advanced fiber-optic delivery devices, today announced that it has acquired InnovaQuartz, Inc. ("IQ") of Phoenix , Arizona. Founded in 1991, InnovaQuartz,a privately held company, is a leading developer, vertically integrated manufacturer and commercial supplier of advanced medical devices for multiple medical procedures including those used in the treatment of kidney, bladder,and other urinary stones. InnovaQuartz's medical devices include fiberoptics, sterile fiber optic delivery devices, optical components and optical subassemblies.

Laserscope acquired all of the capital stock of InnovaQuartz for approximately $7.5 million in cash, the assumption of approximately $1.1million in debt and future cash payments contingent on the financial performance of IQ over approximately three years.

Eric Reuter , President and CEO of Laserscope said, "The acquisition of IQis exciting for Laserscope for three important strategic reasons. The firstis that the addition of IQ's newest fiber optic product line provides us an immediate entry with leading technology into another important urological market -- the intracorporeal treatment of kidney, bladder, and other urinarystones that use holmium laser technology. Entry into this large, growth market is consistent with our strategy to become a complete player in thefield of urology, and the treatment of stones is one of the highest volume urological surgical procedures in the U.S. outside of the treatment of benign prostatic hyperplasia ("BPH"). IQ's new line of stone fibers incorporatespatented technology and know-how which provides for superior flexibility and strength. Going forward, the IQ products will be sold through our US and international urology distribution channels for use with Laserscope's own StoneLight(R) holmium laser as well as for use with many of the substantial worldwide installed base of other holmium lasers. Additionally, we expect tomaintain certain of IQ's key distribution and OEM relationships. IQ's licensed technology and vertical manufacturing expertise bolsters Laserscope's leading position in the design and manufacture of disposable fiber opticdelivery devices for high volume procedures in urology. We expect that IQfiber optic product line revenues can be grown substantially over the next several years as the IQ fiber optic product line gains recognition as the standard for treating stones with holmium laser technology. We intend topursue an aggressive marketing and sales strategy for bringing these products to the large existing installed base of holmium lasers worldwide.

"The second reason that this acquisition is so important," continued Mr.Reuter , "is that it serves a key operational objective which is the swift realization of savings in fiber materials costs for our main fiber opticproduct line, the GreenLight PV delivery device. Since 2002, IQ has been areliable, high quality supplier of a key component of Laserscope's GreenLightPV fiber optic delivery device used for the treatment of BPH. We therefore expect the acquisition will enable us to realize an immediate reduction in the cost of goods of our single use products and we anticipate that IQ's manufacturing and design capabilities will contribute further reductions in the costs of our fiber optic disposable products in the future.

"Thirdly, IQ's R&D expertise and focus in specialty assemblies and components and rapid proto-typing will support Laserscope's existing R&Defforts to develop new, technologically superior and lower cost fiber optic medical devices. The benefits we expect to realize through the addition of InnovaQuartz's expertise fully support Laserscope's long term fiber optic strategy to become the world's leading provider of competitively priced and high quality medical fiber optic technology for high volume medical procedures," said Mr. Reuter .

1 2 3 next

Subscribe to our RSS Feeds