In brief: Teleflex boosts urology presence, complex rehab providers make buys

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Friday, September 8, 2017

WAYNE, Pa. – Teleflex will buy NeoTract for $1.1 billion in a move that significantly expands its urological product offerings, the company announced Sept. 5.

NeoTract, maker of the UroLift System, had revenues of about $51 million in 2016 compared to about $18 million in 2015, representing 178% year-over-year growth. For 2017, NeoTract expects revenues to be between $115 million and $120 million, and for 2018, it expects them to grow at least 40%.

“This combination is expected to solidify Teleflex’s ability to generate mid-single digit constant currency revenue growth for the next several years, as well as enhance Teleflex’s margin profile,” said Benson Smith, chairman and CEO of Teleflex. “NeoTract is a truly unique company with a differentiated technology that targets a greater than $30 billion addressable market, and through their internally developed, patented UroLift System, have achieved sequential quarterly revenue growth of 20% or greater in 13 of the past 14 quarters. Importantly, while we believe NeoTract has compelling growth opportunities as they continue to penetrate the market.”

Founded in 2004, NeoTract is a privately held medical device company that has developed and commercialized the FDA-cleared UroLift System, a minimally invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia or BPH.

Under the terms of the agreement, Teleflex will acquire NeoTract for an upfront cash payment of $725 million at closing, and up to an additional $375 million upon the achievement of certain commercial milestones related to sales through the end of 2020. The boards of directors of both Teleflex and NeoTract have unanimously approved the transaction.

Numotion buys Academy Medical Equipment

BRENTWOOD, Tenn. – Numotion has expanded its footprint in Southern and Central California, as well as Nevada, with its acquisition of Academy Medical Equipment. Las Vegas-based Academy Medical Equipment, which has been in business for more than 17 years, has seven locations—six in California and one in Las Vegas. Fifty-nine employees at Academy Medical Equipment will transition to the Numotion team, including ATPs, as well as professionals in customer care, service and repair, payer relations, medical documentation and order processing. Also this year, Numotion acquired the complex rehab division of CVC Home Medical in Wilmington, N.C.; Horns Medical Supply in Athens, Texas; the complex rehab division of BlueDot Medical in Charlotte, N.C.; and the complex rehab division of the Ability Center in San Diego. Numotion says it has more than 130 locations across the country and serves more than 250,000 people annually.

NSM hits five locations in Pennsylvania

NASHVILLE, Tenn. – National Seating & Mobility has acquired the rehab division of Harrisburg, Pa.-based Dynamic Healthcare Services. NSM now has five locations in Pennsylvania, according to a press release. Two of Dynamic Healthcare’s ATPs will join the NSM team. “This acquisition strengthens NSM’s presence in Pennsylvania, allowing our teams to serve clients across the state,” said Bill Mixon, NSM CEO. “We are pleased to add this location to our growing national network of branches.” Earlier this summer, NSM bought Mobility Healthcare in Texas.

Golden Technologies lines up consumer financing

OLD FORGE, Pa. – Golden Technologies has partnered with CareCredit to offer its dealers a new financing solution, the lift chair manufacturer announced Sept. 6. Through the partnership, dealers can now offer their customers a dedicated line of credit to pay for costs not covered by insurance. Financing offered through CareCredit can span six, 12 or 18 months, with dealers receiving payment in just two days, according to a press release. “We are excited about this strategic relationship with CareCredit and how it can best help our retailers,” said C.J. Copley, Golden’s executive vice president of sales and marketing. “Durable medical equipment retailers often face challenges in helping consumers get an ideal product while working under the constraints of increasing deductibles and rising insurance premiums. CareCredit’s financing solution program will help consumers cover the costs for retail-cash purchases at a time in their life when they need it most.” CareCredit works with more than 200,000 enrolled healthcare providers and select health-focused retailers across the country.

Alliqua sells TheraBond line

YARDLEY, Pa. – Alliqua BioMedical has sold its TheraBond 3D Antimicrobial Barrier Systems product line to Argentum Medical, a manufacturer of metallic silver-based, antimicrobial wound dressings, for approximately $.38 million, it announced Sept. 5. Alliqua will use sale proceeds for working capital purposes and to reduce its outstanding debt balance. Argentum is a portfolio company of Shore Capital Partners, a private equity firm.

Rotech employee sentenced in identify theft

PLANT CITY, Fla. – Sharmekia Young, a former employee of Rotech Healthcare, was sentenced to three years in prison for conspiracy and aggravated identity theft, according to the U.S. Attorney’s Office for the Middle District of Florida in Tampa and as reported in The Ledger. Young worked at Rotech’s Lakeland billing center, where she allegedly used her access to the provider’s secure databases to obtain the personal information of 957 people. The information was sold and used to create fake credit cards and Florida driver’s licenses. She conspired with another Rotech employee, Fontella James, who was sentenced in June to 32 months in prison.

Study refines link between sleep apnea, other diseases

BALTIMORE – Untreated sleep apnea can contribute to a range of conditions associated with heart disease and diabetes, according to a new study conducted by Johns Hopkins Medicine researchers. The study found increases in blood sugar, fat levels, stress hormones, and blood pressure in patients with obstructive sleep apnea. The findings, published in The Journal of Clinical Endocrinology & Metabolism, may help to refine the scientific debate over whether sleep apnea is just a manifestation of obesity, or an active contributor to associated health problems like diabetes and heart disease, researchers say. The study also emphasizes the importance of CPAP as a treatment solution: Researchers found that withdrawing CPAP in sleeping patients increased levels of free fatty acids, glucose and cortisol—all conditions linked to diabetes.

CareMotion adds virtual assistant to website

CLEVELAND  – CareMotion, a growing online retailer of home medical equipment, has launched a virtual shopping assistant designed to eliminate the pain points associated with online purchases. The assistant asks customers to enter basic health and fitness information, allowing it to recommend the best products to fit their needs. “All of us at Care Motion are advocates for helping seniors enjoy a higher quality of life while living at home, independently," said Aaron Cavano, president. "We developed the shopping assistant to ensure customers find the right products at the lowest prices, and we believe this technology will revolutionize how home medical equipment is purchased." CareMotion, which prioritizes cash-paying customers over third-party insurance, offers same-day shipping, a 30-day money back guarantee, and at-home repairs and installations. Its website carries brands like Drive Medical, EZ-Access, Inogen, Invacare, Pride Mobility Products and more.

Date stamp requirement updated

WASHINGTON – The DME MACs have updated the Dear Physician letter to remove the requirement for a date stamp or similar to prove a supplier has received a written order prior to delivery of an item, according to a bulletin from AAHomecare. Now, the date of the physician signature must be on or before the date of delivery. The requirement is mandated by the Affordable Care Act.

Short takes: Option Care, Medicine Shoppe, ACHC, Abilene CPAP Sales & Supplies

Bannockburn, Ill.-based Option Care, an independent provider of home and alternate treatment site infusion services, has signed an agreement to become a national contracted provider of Radicava, an IV infusion treatment for ALS. Radicava is the first ALS treatment option approved by the U.S. Food and Drug Administration in more than 20 years. Option Care says its national payer network includes contracts with more than 800 health plans, ensuring broad access to the treatment…After more than two years of planning, the new Medicine Shoppe Pharmacy in DuQuoin, Ill., is near completion, according to the Harrisburg Register. The 3,000-square-foot pharmacy, which will also carry DME, is expected to open in the next two months with added features like drive-up windows and better parking…Cary, N.C.-based The Accreditation Commission for Health Care has been approved by the New Mexico Department of Health as the first accreditation organization permitted to perform accreditation surveys in lieu of an initial state licensure survey for home health and hospice facilities…Speaking of accreditation, Abilene, Kan.-based Abilene CPAP Sales & Supplies was recently accredited by the Healthcare Quality Association on Accreditation. The company was started by husband-and-wife team Curtis and Sheree Osland, CPAP users themselves, about three years ago.