The Helica Thermal Coagulator, as the device is called, is used by obstetricians and gynecologists for treating endometriosis. It is estimated that over 16 million women suffer from the condition world wide.
Cytyc will pay Helica $1 million up front, and a two year earnout based on sales. Cytyc said it will pay a maximum of $9 million during that period. The second generation device will be launched in 2008.
Early Wednesday Cytyc released its third quarter results with revenue increasing 18% to $154.3 million, while diluted earnings per share also gaining 18% to $0.31 per share. That also included a tax benefit of $0.02 per share.
Domestic surgical product revenue increased by 33%, while international revenue increased by 34%.
Shares of Cytyc closed on Wednesday at $24.50, near its 52 week low of $22.79. The year high was $30.77 back in February of 2006.