According to Doug Kohrs, chairman and chief executive of AMMD, roughly 10 million men in the United States are afflicted with some form of BPH, with two million on drug therapy, another one million in a "watchful waiting mode" not being treated, and another six million "suffering in silence."

According to the BSD Web site, an estimated $10 billion is spent annually worldwide for treatment of BPH.

The TherMatrx Dose Optimized Thermotherapy (DOT) system was designed specifically as an in-office treatment for BPH that combines effective symptom relief, durable results, and patient comfort and safety. Since receiving marketing clearance for the DOT system from the Food & Drug Administration in June 2001, TherMatrx has placed more than 400 DOT systems in the United States in less than three years. The DOT system is the most widely used thermotherapy treatment for BPH in the United States, with more than 25,000 patients treated since mid-2001. According to the American Medical conference call the day after the announcement, the deal was in process for six months, with AMMD stating that it believes the acquisition gives it a very strong advantage over such competitors as Medtronics, Johnson & Johnson, and Boston Scientific.

The deal, when completed, is critical for BSD because it provides a significant infusion of capital into the company, providing it with assets to help move the company forward in a number of ways, not the least of which is the ability to expand sales and marketing efforts for its microwave hyperthermia systems.

In this way, the sale of TherMatrx almost serves as a miniature "exit strategy" for BSD in its efforts to take the company to the next level.

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David Politis leads Politis Communications, a strategic communications agency that helps maximize corporate value for high-tech and life science companies.

E-mail: dpolitis@politis.com