Urohealth Lands 5-Year Contract

COSTA MESA — Urohealth Systems Inc. said Thursday it has signed a five-year contract to supply its medical and surgical products to a major hospital group.

The contract to supply Premier Inc.’s 1,800 hospitals and other health care facilities lists purchasing “targets” of more than $1 billion over the five-year term, although no minimum purchasing requirements are included. Hospitals and systems participating in the Premier system commit in advance to use Premier contracts for 90% or more of their supply needs.

The arrangement will have “significant financial and operations benefits,” said Charles A. Laverty, Urohealth chairman and chief executive. Urohealth’s revenue for the nine months ended Dec. 31 totaled $68 million.

The company, which makes urological, gynecological and general surgery products, also said it has agreed to buy closely held medical-device maker Microsurge Inc. for $38 million in stock and assumed debt. Microsurge, based in Needham, Mass., makes surgical tools used in minimally invasive surgery.

Urohealth stock rose 56 cents a share Thursday to $10.44.