Bayer takes over Conceptus
pharmafile | June 6, 2013 | News story | Sales and Marketing | Bayer, Conceptus
The Bayer Group, which contains Bayer HealthCare, has taken over US contraception specialist Conceptus in a $1.1 billion deal.
The German manufacturer will have full control of the company and of its stand-out product, Essure, the only permanent female contraceptive that does not require surgery or hormone treatment and which has been on the market for a decade.
For Bayer it is exactly the sort of bolt-on acquisition which should complement organic growth, fitting in with its existing portfolio of long-acting intrauterine systems and short-acting oral contraceptives – and Conceptus’ position in the strategically-important US market is particularly attractive.
“We are pleased with Conceptus stockholders’ positive response to our offer,” said Bayer chief executive Marijn Dekkers. “It demonstrates the outstanding perspectives opened up by this acquisition project.”
“Our experience in the field of gynecology combined with our sales and distribution expertise will help to further develop Conceptus’ business,” said Andreas Fibig, president of Bayer HealthCare Pharmaceuticals.
Conceptus, which had net sales of $141 million in 2012 and turned over $34.1 million in the first quarter of 2013, has always been fully behind the deal, saying on April 29 that Bayer “represents the best and most strategically sound partner for us”.
Formed in 1992, Conceptus is based in Mountain View, California, has around 300 staff and will become a wholly-owned Bayer subsidiary when the transaction goes through.
“Essure has been well accepted in the market for more than ten years and demonstrated robust growth over this time,” said Conceptus chief executive D. Keith Grossman. “We are excited about this change and what it means for the future of the Essure system as a standard of care option for women around the world.”
His hope is that Essure can now grow more quickly in established markets – where more than 750,000 women have used the Essure method – with Bayer’s reach enabling it to make a splash in new territories.
“Our customers and patients will benefit from this increased access,” he added.
The Essure procedure, approved by the FDA since 2002, consists of soft, flexible inserts being placed in a woman’s fallopian tubes through the cervix without incisions.
Over the next three months, the body works with the inserts to form a natural barrier in the fallopian tubes to prevent sperm from reaching the egg.
Three months after the procedure, a test is given to confirm that the tubes are blocked, which means that it can be relied on as a method of permanent birth control.
Based on five years of follow-up data, Conceptus says Essure is 99.83% effective with no pregnancies reported in clinical trials.
Adam Hill
Related Content
Evotec and Bayer announce new kidney disease study
Evotec and Bayer have announced the initiation of a phase 2 clinical study in kidney …
Third application for Orion’s prostate cancer drug submitted by partner Bayer
Finnish pharmaceutical company Orion has announced that its partner Bayer is applying for a third application …
Bayer and Evotec to collaborate on precision cardiology
Bayer and Evotec have announced that they have updated the focus of their collaboration to …
