Minneapolis-based Urologix, Inc., on Tuesday announced that it has signed an exclusive worldwide licensing deal for Medtronic's Prostiva RF Therapy System.

The agreement gives Urologix licensing rights for the therapy-which uses radio frequency to treat enlarged prostates-for 10 years.

Urologix said that the licensing deal complements its existing product, Cooled ThermoTherapy, a minimally invasive therapy that the company currently manufactures and markets. Both therapies treat benign prostatic hyperplasia (BPH), an enlarged prostate condition that Urologix said affects more than 9 million men in the country.

The company reported sales of $12.6 million in its most recently completed fiscal year, down 15 percent from the previous year. Urologix said that the Prostiva deal is expected to bring total revenue up to between $18 million and $20 million for the fiscal year that ends next June.

Urologix reported a net loss of $3.7 million for its most recently completed fiscal year, compared to a loss of $2.2 million during the previous year. Chief Financial Officer Brian Smrdel on Tuesday declined to comment on how the Prostiva licensing deal is expected to influence this year's earnings.

The Prostiva licensing deal includes a $1 million license fee-including a $500,000 up-front payment and another $500,000 payment in a year-Smrdel said. The deal also includes “ongoing royalties,” although he declined to disclose their details.

“Urologix is committed to providing safe, effective, and durable, in-office treatment solutions for patients suffering from BPH. The Prostiva RF Therapy System, like Urologix's proven market-leading Cooled ThermoTherapy, provides an ideal early treatment option for BPH-related obstructive urinary conditions,” CEO Stryker Warren Jr. said in a statement. “This license is consistent with our strategy to expand our presence in urology offices and leverage the breadth of our product platform through effective market development efforts.”

Shares of the company's stock were trading up about 35 percent to $1.22 during Tuesday afternoon trading.