Cogentix Medical (NASDAQ: CGNT) said today that it invested $2 million in privately-held Vensica Medical and its ultrasound-based, needle-free drug delivery device, VensiCare.
Israel-based Vensica Medical is developing its VensiCare device as a way to deliver botulinum toxin to treat overactive bladder. The company also has IP for the delivery of oncology agents to the bladder, according to Cogentix.
In connection with its investment, Cogentix receives one seat on Vensica’s board and options to acquire the entire company for an additional $8 million.
Vensica is reportedly planning on launching human clinical trials for VensiCare during the fourth quarter of next year.
“We are very excited about the potential the VensiCare product may provide for the more than 42 million patients in the US suffering from overactive bladder and its symptoms. The ability to offer another minimally invasive treatment option and significantly increase the number of patients who receive a third line therapy for OAB is truly an exciting opportunity to leverage our strong urology market presence. Our physician customers often use Botox for the treatment of overactive bladder, and we believe Vensica’s approach and product pathway currently show promise for revolutionizing the manner in which botulinum toxin is administered for OAB,” Cogentix president & CEO Darin Hammers said in prepared remarks.
“This is our third business development transaction in the last three months and demonstrates our team’s commitment to prudently investing the cash on our balance sheet in a variety of transactions that now include acquisition, licensing and development agreements.”
“We are thrilled to partner with Cogentix as we continue the development of VensiCare,” Vensica CEO Avner Geva added. “We believe that Cogentix is the most attractive partner for Vensica given their knowledge of the OAB market and their successful track record with Urgent PC. We are confident this partnership will result in maximizing the potential of VensiCare.”
“The structure of this investment allows Cogentix to oversee the development of the high potential VensiCare device for a modest initial investment,” Hammers said.
“Further, the agreement gives the Company the option to acquire all of Vensica at a fixed price if significant value creating milestones are achieved. And while the initial work of Vensica focuses on the delivery of botulinum toxin to treat OAB, we believe the VensiCare product has the potential to be a broad based drug delivery platform that could deliver a variety of drugs for other indications, such as cancer.”