Profound Medical (OTCQX:PRFMF; TSXV:PRN) has completed the acquisition of the Sonalleve MR-HIFU business from Royal Philips (NYSE:PHG; AEX:PHIA).
Sonalleve MR-HIFU is an innovative therapeutic platform that combines real-time MR imaging and thermometry, with high intensity focused ultrasound to enable precise and incision-free ablation of diseased tissue.
Philips will continue to distribute Profound’s TULSA-PRO system, which is designed specifically for ablation of prostate tissue and also uses real time MR imaging with thermal ultrasound for precise ablation.
In addition, Philips and Profound have expanded their non-exclusive strategic sales relationship to include distribution of Sonalleve MR-HIFU. For a limited time, Philips will also provide other services, including, but not limited to, manufacturing and installation.
Profound now becomes the only company to provide a therapeutics platform that provides the precision of real-time MR imaging combined with the safety and ablation power of directional (inside-out) and focused (outside-in) ultrasound technology for the incision-free ablation of diseased tissue.
“This transaction with Philips is truly transformative for Profound, and represents an opportunity for us to immediately transition from a development-stage to a growth-stage company,” Dr. Arun Menawat, Profound’s CEO, said in a statement.
“From a commercial perspective, our strengthened MR-Ultrasound ablation technology platform not only benefits Profound by significantly increasing the total opportunity size and creating synergies, but also benefits hospital customers by providing them with the ability to better utilize their MR system assets,” he added.
Dr. Menawat said that in addition to the contribution the acquisition of the Sonalleve MR-HIFU business will make to Profound’s revenue base, “we believe that it will also help accelerate our growth going forward.”