Angiotech Pharmaceuticals (Vancouver, British Columbia) completed its purchase of biomaterials engineering and biosurgical products manufacturer Cohesion Technologies (Palo Alto, California). Initially announced last September, the all-stock merger is valued at about $42 million and combines Angiotech's drug-coating technology with Cohesion's biomaterials business. Each share of Cohesion common stock will be exchanged for a share of Angiotech common stock at a fixed ratio of 0.11688. Angiotech is focused on developing drugs that are used to enhance the performance of medical devices and biomaterials, and the firm is most often cited in connection with its paclitaxel coating technology in the drug-eluting stent sector. Angiotech plans to combine its paclitaxel coating technology with Cohesion's technologies for improved effect following surgery. Cohesion's products include CoSeal, a synthetic vascular sealant produced from biocompatible polymers; CoStasis, a liquid sprayable hydrogel used as an adjunct to hemostasis in surgical procedures; and Adhibit adhesion prevention gel.

DePuy's (Warsaw, Indiana) DePuy AcroMed subsidiary (Raynham, Massachusetts) has acquired substantially all of the assets of Orquest (Mountain View, California), a privately held biotechnology company focused on developing biologically based implants for orthopedics and spine surgery. As a broad-based orthopedic franchise, the DePuy companies said they would pursue marketing and development of multiple products across all musculoskeletal fields. Terms of the transaction were not disclosed. DePuy is a Johnson & Johnson (New Brunswick, New Jersey) company. Orquest's principal product, Healos Bone Graft Material, was designed to reduce the time and pain associated with standard bone graft harvesting. Healos products have been marketed in the U.S. and Europe since 2001, and, according to the company, represent a therapeutic advance for patients requiring bone graft material for spine fusion or other surgery. The recent acquisition of certain assets of Orquest complements activities ongoing at DePuy. In particular, DePuy said that Orquest's product development efforts that focused on further enhancing bone formation, by combining Healos with the BMP molecule (MP52) now licensed to DePuy, will benefit from a direct integration into the existing scientific, clinical and regulatory programs firmly established within DePuy. Healos/MP52 is in human clinical studies in Europe, and is slated to enter the next stage of clinical development in the U.S. this year. DePuy makes orthopedic devices and supplies.

Edwards Lifesciences (Irvine, California) reported the acquisition of the percutaneous mitral valve repair program of Jomed NV (Beringen, Switzerland), a provider of products for minimally invasive vascular intervention, for about $20 million. The acquisition includes all technology and intellectual property associated with the program. Edwards said it expects to take an in-process research and development charge related to the transaction in the current quarter, with the size of the charge yet to be determined. Michael Mussalem, chairman and chief executive officer of Edwards, said that the purchase not only offers an extension of the company's current options for treating valve disease but also grows the sector. He put the current opportunity for heart valve treatment at $850 million annually and that the new offerings, once developed, could double that figure by 2010. Edwards focuses on four main cardiovascular disease states: heart valve disease, coronary artery disease, peripheral vascular disease and congestive heart failure.

Heritage Worldwide (New York) has agreed to acquire French company Poly Implants Prostheses SA (PIP), which it said is the third-leading international manufacturer of breast implants. PIP also manufactures body support products and other implants, currently sells its products in 40 countries worldwide and is seeking to enter the U.S. market. In 1992, PIP became the first company to put the hydrogel breast prosthesis on the market. And in 1993, PIP launched the first saline prefilled breast implants. Heritage will acquire 99% of the outstanding capital stock of Milo Finance SA, a Luxembourg limited liability entity that in turn owns all of the capital stock of PIP. Heritage will issue to the owners of PIP a total of 13.74 million shares of its common stock. After close of the acquisition, the former owners of PIP will control 85% of the outstanding common stock of the company.

Synthes-Stratec (SSI; Oberdorf, Switzerland) reported an agreement to acquire Spine Solutions (New York) for up to $350 million. Spine Solutions is the developer and marketer of a total artificial disc system, ProDisc, designed to reduce spinal disorders and back pain and restore mobility to the lumbar and cervical spine after surgery. The acquisition price will consist of a $175 million payment at closing and up to an additional $175 million potentially paid on the achievement of certain milestones relating to FDA approval of Spine Solutions' cervical and lumbar disc products. Spine Solutions will operate as an independent subsidiary within the Synthes-Stratec group. The company expects a final FDA approval "within a reasonable timeframe," based on the number of patients already treated. Synthes-Stratec is a provider of instruments, implants and power tools for the orthopedic and spine surgery market.