February 26, 2007
Cytyc to buy contraceptive maker
By Christina Davis
Marlboro-based Cytyc Corp. is acquiring California-based Adiana Inc. for as much as $215 million over the next four years.
According to Cytyc, the company will pay $60 million cash up front for Adiana, plus "milestone payments." Milestone payments could include a payment when Adiana's main product - a no-incision alternative to tubal ligation for women - is approved by the U.S. Food and Drug Administration.
According to the terms of the agreement, total payments, including the four-year earn-out, will not exceed $215 million.
In light of the acqusition, Cytyc is narrowing its 2007 diluted earnings per share guidance to the range of $1.30 to $1.35 per share.
Cytyc expects the business to break even within three quarters after receiving FDA approval for Adiana's product.
Cytyc is the manufacturer of NovaSure, a surgical system designed to treat heavy menstrual bleeding.
According to Cytyc, the company will pay $60 million cash up front for Adiana, plus "milestone payments." Milestone payments could include a payment when Adiana's main product - a no-incision alternative to tubal ligation for women - is approved by the U.S. Food and Drug Administration.
According to the terms of the agreement, total payments, including the four-year earn-out, will not exceed $215 million.
In light of the acqusition, Cytyc is narrowing its 2007 diluted earnings per share guidance to the range of $1.30 to $1.35 per share.
Cytyc expects the business to break even within three quarters after receiving FDA approval for Adiana's product.
Cytyc is the manufacturer of NovaSure, a surgical system designed to treat heavy menstrual bleeding.
WBJ Web Partners
Most Recent
Most Recent
0 Comments