Wasatch Medical Clinic, whose providers using acoustic wave therapy to treat erectile dysfunction is considering a sale, three sources tell Axios.

Why is this important: As established women’s healthcare providers and femtech startups garner huge investor interest, more and more providers designed for men’s sexual and reproductive health are gaining traction.

What is happening: A sale process managed by Macquarie Capital has recently been launched for the company led by the founder, sources say. First-round bids are due next week and a sponsor’s outcome is deemed the most likely.

  • Wasatch is marketing adjusted EBITDA of $40 million on approximately $120 million in revenue for 2021, which represents fully ramped-up clinics that were recently opened, sources say. Unadjusted EBITDA translates to approximately $15 million.
  • Projected EBITDA for 2022 is closer to $60 million on about $175 million in revenue, they add.

How it works: Wasatch Clinics treats patients with acoustic wave or low intensity shock wave therapy for erectile dysfunction with the aim of stimulating the growth of new blood vessels in the penis.

  • Several conditions such as diabetes, obesity, high cholesterol or high blood pressure are considered risk factors for Ed.

To note : The Herber, Utah-based company operates a direct-to-consumer model with cash-reimbursed services.

  • Growth and customer flow have been fueled by its powerful marketing engine, sources say, although digital advertising has yet to be tapped.

Between the lines: Wave therapy sessions typically take place weekly for a period of around six weeks, creating a captive population that Wasatch may be able to tap into, according to a source.

  • In other words, there is a perceived opportunity to cross-sell other men’s health products to this patient group.

Yes, but: Acoustic wave therapy to treat erectile dysfunction is not FDA approvedand although this is not a new innovation, research is ongoing to determine the long-term benefits.

  • Whoever ends up investing in Wasatch is likely eyeing a bigger opportunity to build a more diverse and comprehensive men’s health business, a source says.

State of play: Comps are rare, but other clinical groups dedicated to treating erectile dysfunction include Peak Performance for Men, backed by Seacoast Capital, which applies targeted linear compression therapy.

With respect to investing in the broader category of men’s health:

  • Posterity Health, a Parker, Colorado-based digital health startup dedicated to male fertility care, raised $6 million in seed funding earlier this month, led by Distributed Ventures.
  • Hims & Hers, a digital health startup offering men’s wellness and telehealth services through Hims, went public via a $1.6 billion SPAC deal last year.
  • Digital health startup Ro, whose Roman unit operates a men’s digital health clinic, has reached a $7 billion valuation in February.
  • Vault, which offers home treatment for men’s health issues including hormonal imbalance and erectile dysfunction, hooked up $30 million in Series A funding in 2020led by Tiger Global Management.

The bottom line: As men’s health remains largely uncharted territory for private equity, Wasatch could provide a good test case for the industry.

Wasatch could not be reached immediately.