Royal Philips has made an agreement to transfer its MR-guided high-intensity focused ultrasound (MR-HIFU) business to Profound Medical, while obtaining a minority interest in Profound as part of the deal.
The deal covers Philips' Sonalleve MR-HIFU system, which is used under MR guidance to deliver thermometry for noninvasive ablation of diseased tissue. Sonalleve has the CE Mark for treating uterine fibroids and for palliative pain treatment of bone metastases.
Philips will retain rights to distribute Sonalleve for use with its Ingenia and Achieva MRI scanners, and the company will provide additional services to Profound, such as manufacturing the MR-HIFU table as well as installation services. Philips already has a nonexclusive deal to sell Profound's Tulsa-Pro system for MR-guided prostate tissue ablation.
As part of the deal, Philips will obtain 7.4 million shares of Profound common stock, representing about 12% of the company. The deal also includes a deferred cash payment that depends on the achievement of future Profound revenue levels up to and including 2020.
The transaction is subject to customary closing conditions, including the relevant regulatory approvals, according to Philips. It is expected to close in the second half of 2017.
