Medifocus Inc. acquires Prolieve Medifocus Inc., a company that has technology to target and treat tumors in combination with chemotherapy or radiation, recently announced its acquisition of all of Prolieve business assets from Boston Scientific Corporation.

Prolieve is a product used to treat prostate enlargement known as benign prostatic hyperplasia, which is very common in men older than 50. Weak urinary stream, the inability to urinate and frequent urgency are symptoms of BPH.

Prolieve is a device that is patent protected. It is used to relieve symptoms of BPH, utilizing intra-cavitary catheters to provide a combination of microwave heating and balloon dilatation of the prostatic urethra.

"The purchase of the Prolieve business assets is a significant business enhancement event for Medifocus," said Augustine Cheung, founder, president and CEO of Medifocus. "With Prolieve, Medifocus now transforms from a development stage cancer treatment medical device company to a mature medical treatment systems and devices company with a revenue-generating commercial product for treatment of BPH and an innovative focused-heat breast cancer treatment system in advanced phase III clinical development."

The BPH drug market accounts for more than $8 billion and is growing. Patients are being treated for BPH with Prolieve in urological offices throughout the United States. Prolieve treatment is also utilized by physicians who use Rocky Mountain Mobile Services, which is a nationwide mobile service provider and part of the asset purchase.

"Using the Prolieve technology platform and the APA focused-heat platform, the company is well positioned to develop a rich pipeline of minimally invasive and side effect-free focused-heat treatment systems and devices for cancer and other diseases," said Cheung.

The current Medifocus management team played a key role in the development of Prolieve. After the deal with Boston Scientific, Medifocus has gained total control of Prolieve hardware inventories as well as the intellectual property portfolio associated with Prolieve.

Mergers and acquisitions can be highly beneficial from a supply chain management perspective, as they can create cost reducing efficiencies. However, some of the benefits can be eroded if the deals are not executed well. Watson Pharmaceuticals recently reported a second quarter loss of $62.2 million after charges related to a pending acquisition of Actavis, which is an international generic drugmaker.The company had earnings of $52.7 million for the same period last year, according to New Jersey news source the Star-Ledger.
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