A Medical Device Daily

CryoLife (Kennesaw, Georgia) said it has sent a letter to Medafor's (Minneapolis) board asking for "greater detail on the board's timing and process" for considering CryoLife's proposal and "entering into direct discussions with us." CryoLife noted in its letter that it has been about two weeks since Medafor's last communication with CryoLife and about three weeks since CryoLife submitted its proposal.

Last week CryoLife bought about 740,000 additional shares of Medafor's common stock for $2 a share, giving the company roughly 11% ownership of Medafor and making it the company's largest shareholder. CryoLife has proposed acquiring the rest of Medafor's outstanding common stock for $2 a share in a combination of cash and CryoLife stock (Medical Device Daily, Feb. 4, 2010).

Steven Anderson, president/CEO and chairman of CryoLife, signed the letter to Medafor.

"We urge you to enter into discussions with us in a timely manner as delaying negotiations with us simply delays the creation of value for your shareholders," Anderson said in the letter. "We believe that CryoLife's resources and financial strength will maximize the potential of Medafor and its hemostatic technology for the benefit of patients and shareholders."

Anderson added in the letter that CryoLife prefers to work with Medafor and its advisors to negotiate a "mutually agreeable" transaction, but said that if Medafor continues to delay or refuses to meet with CryoLife, "we will be forced to consider all our options." This includes exercising its right to call a special shareholders meeting as provided for under Medafor's bylaws, he noted.

CryoLife made its first serious play for Medfor last month, making an initial purchase of 1.6 million Medfor shares, which was a roughly 8% ownership stake at the time.

CryoLife has the exclusive right to distribute Medafor's MPH polysaccharide hemostatic technology under the private label HemoStase within the U.S. for use in cardiac and vascular surgery and in many international markets for cardiac, vascular, and general surgery, subject to certain exclusions. CryoLife achieved $6 million in sales of HemoStase in 2009. Anderson said he views the Medfor products as a perfect complement to CryoLife's BioGlue technology, which would allow it to offer surgeons a full range of products to assist in controlling and preventing bleeding.

In other dealmaking activity:

• IPC The Hospitalist Company (North Hollywood, California), a national hospitalist physician group practice company, said it has acquired the hospitalist practice of Arizona Medical Services, d.b.a. Old Pueblo Medical Consultants (Tucson). The acquisition of Old Pueblo represents continued expansion in the Tucson market, where IPC has a long-standing presence, the company said. Practicing in 22 skilled nursing facilities and four assisted living facilities, Old Pueblo has an annualized volume of more than 30,000 patient encounters.

"The purchase of Old Pueblo, our first for 2010, continues our acquisition program at a steady pace," said Adam Singer, MD, CEO/chairman of IPC. "In 2009 we completed eight acquisitions both in existing markets and in new markets. More and more hospitalist practice groups are looking to IPC for growth capital, business infrastructure, and experienced management, all key ingredients for achieving quality patient care and better alignment with the goals of the medical facilities."

John Wadleigh, DO, founder and CEO of Old Pueblo, joins IPC as a practice group leader for the Tucson region.

"IPC's excellent reputation for quality care, both in acute and long-term care facilities, provides us a significant opportunity to reach new levels of clinical integration and effective transition of care, to the benefit of our patients," Wadleigh said.

• IMS Health (Norwalk, Connecticut), a provider of market intelligence to the pharmaceutical and healthcare industries, said its stockholders approved the proposal to adopt the merger agreement providing for its acquisition by entities created by certain affiliates of TPG Capital and the CPP investment board.

According to the final tally of shares voted, more than 75% of the outstanding shares of common stock of IMS Health as of the close of business on Dec. 28, voted to approve the proposal to adopt the merger agreement, IMS said.

The consummation of the merger remains subject to the satisfaction or waiver of certain other closing conditions set forth in the merger agreement, the company noted. Assuming all conditions are satisfied, the company expects to complete the merger by the end of the first quarter.