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Procedure with Profound's
TULSA-PRO system

Philips completes sale of MR-HIFU business to Profound Medical

par Lauren Dubinsky , Senior Reporter
Royal Philips announced today that it completed its business deal with Profound Medical Corporation.

Last month, the companies entered an asset and share purchase agreement. Profound agreed to acquire Philips' MR-Guided High Intensity Focused Ultrasound business in exchange for 7,400,000 Profound common shares.

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"We see a world where patients no longer need to choose between living well and living long, or between undergoing clinically effective procedures and returning quickly to their normal lives," Dr. Arun Menawat, CEO of Profound Medical, told HCB News. "By leveraging MR-guidance and ultrasound to deliver incision-free, inherently safe, personalizable, precise and cost-effective therapeutic solutions, we believe that we are well on our way toward realizing that vision."

Philips' Sonalleve MR-HIFU is used along with real-time MR imaging and thermometry to noninvasively ablate diseased tissue. To date, it has CE mark for the treatment of uterine fibroids and palliative pain associated with bone metastases.

Philips will continue to distribute Sonalleve for use with its Ingenia and Achieva MR systems. The company will also provide Profound with additional services such as manufacturing the MR-HIFU table and installations.

"The addition of Sonalleve to our offering benefits hospital customers by providing them with the ability to better utilize their MR system assets," said Menawat. "Our strengthened MR and ultrasound technology platform will accelerate the development of new clinical applications, while better serving the needs of our customers."

Philips is already a non-exclusive distributor of Profound's TULSA-PRO system and will continue to be. This system is designed for MR-guided prostate tissue ablation procedures.

Profound is now the only company that provides a therapeutics platform that combines real-time MR imaging and directional and focused ultrasound technology for ablating diseased tissue.

As part of the business agreement, Philips can purchase or sell securities of Profound "from time to time as it deems appropriate, based on market conditions and other circumstances."

However, Philips agreed not to sell, transfer or dispose of its interest in the common shares for one year after the completion of the transaction.

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