By Dominic Chopping

Danish medical-device company Coloplast A/S said Tuesday that it has bought Nine Continents Medical, Inc. for an initial $145 million.

Nine Continents Medical is a privately held company that has developed an implantable tibial nerve stimulation treatment for overactive bladder.

Coloplast said it expects to begin pivotal studies of the treatment in 2021 and hopes to obtain premarket approval for a device in the U.S. and European Union between 2024 and 2025.

The acquisition price consists of $145 million upfront in cash--financed using existing credit facilities--and an additional contingent future milestone payment.

The deal doesn't change Coloplast's dividend policy, and it has no impact on Coloplast's long-term guidance of 7%-9% annual organic growth and a more than 30% earnings before interest and tax margin in constant currencies.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 03, 2020 07:11 ET (12:11 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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