NEW YORK (AP) — Conceptus Inc. said Monday it is buying contraception technology from American Medical Systems Holdings Inc. for $23.6 million.
The sale involves patents and technologies called Ovion, which Conceptus plans to use in developing future versions of its Essure permanent female contraceptive, the company said. Conceptus will not have to make any royalty payments to American Medical Systems under the agreement, and it will not owe any more royalties on Essure sales to American Medical Systems.
The Mountain View, Calif., company said the end of those payments will add about 5 cents per share to its third-quarter profit.
Essure is a permanent birth control method in which small inserts are placed in the fallopian tubes. The woman's body then forms a natural barrier around the inserts, which blocks sperm from reaching the egg, preventing pregnancy. The Food and Drug Administration approved Essure in 2002.
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Conceptus shares closed earlier up 5 cents at $17.42 and were unchanged in aftermarket trading. Shares of Minnetonka, Minn.-based American Medical Systems rose 66 cents, or 4.1 percent, to $16.95 in after-hours trading, having closed earlier at $16.29.