A Medical Device Daily
Cardium Therapeutics (San Diego) said it has received the final $1. 1 million payment from Royal Philips Electronics (Amsterdam, the Netherlands) in connection with Philips' 2009 acquisition of Innercool Therapies.
The release of funds from restricted cash represents the receipt of all amounts escrowed in connection with the Innercool acquisition by Philips, less an adjustment of about $50,000 to correct for working capital revisions and costs in connection with the closing of the $11.25 million transaction.
“Cardium's strategic repositioning and sale of Innercool Therapies to one of the world's leading companies providing healthcare and other products, represents the first monetization from the company's biomedical investment portfolio, and we are now focused on other opportunities with the potential for future partnering,“ said Christopher Reinhard, CEO/chairman of Cardium.
Royal Philips reported its agreement to acquire the assets of Innercool about two years ago (Medical Device Daily, July 17, 2009) noting that the deal had an overall value of $12.75 million. Innercool was founded in 1998 and in 2006, Cardium acquired the medical device company for about $6 million. Philips described the Innercool deal as an asset purchase for $11.25 million. In addition, Philips agreed to the transfer of about $1.5 million in trade payables. Innercool makes a catheter device designed to cool blood that travels to the brain, reducing the risk of damage in patients who suffer aneurysms or heart attacks.
In other dealmaking activity, OraSure Technologies (Bethlehem, Pennsylvania) said it has completed its acquisition of DNA Genotek (Ottawa), a provider of oral fluid sample collection, stabilization and preparation products for molecular diagnostic applications, for 50 million Canadian dollars in cash (roughly $50.7 million at current exchange rates).
The acquisition was funded by OraSure with cash on hand.