Bayer has wrapped up its $1.1 billion acquisition of Conceptus, adding the company's permanent birth control device to its flagging contraceptive business.
Conceptus shareholders approved Bayer's offer, tendering 96.4% of the company and giving Bayer the green light to make Conceptus a subsidiary and start reaping the benefits from the company's Essure device.
"We are pleased with Conceptus stockholders' positive response to our offer," Bayer CEO Marijn Dekkers said in a statement. "It demonstrates the outstanding perspectives opened up by this acquisition project."
Essure, which has been used by more than 750,000 women around the globe, is an FDA-approved implant that blocks off the fallopian tubes to prevent conception. The device is inserted through the cervix in what Conceptus said is a 10-minute procedure, causing the body to develop a natural barrier that blocks insemination.
The device is covered by most public and private insurance plans, Bayer said, and Essure revenue will help make up for sliding sales among the company's birth-control pills, which face stiff generic competition.
And, with Conceptus' recent performance, the buyout could be more than enough to boost Bayer's contraceptive unit. Last quarter, Conceptus posted a 17.5% revenue jump, hauling in $34.1 million and $2 million in net profit, compared to a $2.8 million loss in the same period last year.
- read the announcement