• Acacia Research (Newport Beach, California) reported that its Hospital Systems subsidiary has entered into a non-exclusive patent license and settlement agreement with Fujifilm (Tokyo) covering a portfolio of patents that apply to medical picture archiving and communication system (PACS) technology. This agreement resolves the parties' dispute that was pending in the District Court for the Eastern District of Texas.

• Acusphere (Tewksbury, Massachusetts) reported a $1 million payment by Cephalon (Frazer, Pennsylvania), the cancellation of Cephalon's $15 million senior secured convertible note and the amendment of its March and November 2008 license agreements with Cephalon for the oncology applications of Acusphere's Hydrophobic Drug Delivery System (HDDS) technology and AI-525, an intravenous formulation of celecoxib. Under the amended terms of the license agreements, Cephalon is no longer obligated to make a $15 million milestone payment or any royalty payments upon approval of AI-525 and Cephalon will assume primary responsibility for patent prosecution of licensed technology. As a result of this transaction, Cephalon's pledge and security agreement, and registration rights agreement have also been terminated and Cephalon no longer has a security interest in any of Acusphere's assets. Also as a result of this transaction, Cephalon no longer has any rights related to equity ownership in Acusphere nor any product rights to Imagify (perflubutane polymer microspheres) for injectable suspension, Acusphere's lead product candidate. After the $1 million payment from Cephalon, Accusphere said it has about $2.8 million in unaudited cash which it expects will fund operations to 4Q09 based on the current operating plan.

• Baxter International (Deerfield, Illinois) reported an agreement with Edwards Lifesciences (Irvine, California) under which Baxter will acquire certain assets related to Edwards' hemofiltration product line, also known as Continuous Renal Replacement Therapy (CRRT). The transaction is expected to close in 3Q09, pending regulatory approvals. Baxter will provide Edwards an initial cash payment of about $56 million upon the close of the transaction. Additionally, Baxter will receive transition services from Edwards and is expected to pay Edwards up to an additional $9 million based on revenue objectives expected to be achieved over the next two years. The impact of this transaction is immaterial to Baxter's financial results for 2009.

• Cambridge Heart (Tewksbury, Massachusetts) reported a strategy aimed at boosting the sales and use of its Microvolt T-Wave Alternans (MTWA) technology, which is designed to predict a patient's risk of sudden cardiac arrest (SCA). The strategy calls for the company to partner with manufacturers of cardiac stress testing equipment to develop an OEM MTWA Module that will be integrated into their systems, and marketed to a much larger number of cardiologists and internal medicine practitioners.

• Covidien (Hamilton, Bermuda) reported that one of its subsidiaries has completed the previously disclosed acquisition of VNUS Medical Technologies (San Jose, California) for about $440 million, net of cash and investments acquired. The deal was first reported in May. "The acquisition of VNUS will expand our vascular product line and is consistent with our strategy of becoming a leading partner with interventional radiologists and vascular surgeons," said Joe Almeida, president of medical devices at Covidien.

• Hill-Rom (Batesville, Indiana) reported the sale of its patents and intellectual property relating to negative pressure wound therapy (NPWT) to Kinetic Concepts (San Antonio). Hill-Rom's NPWT portfolio included U.S. and foreign patents and patent applications covering innovations to NPWT components, protocols, and related therapies. The transaction is effective immediately. Terms of the transaction were not disclosed.

• Medifacts International (Rockville, Maryland), a global cardiovascular core lab, reported the acquisition of the Clinical Trials Services (CTS) division of Spacelabs Healthcare (Issaquah, Washington). Financial terms were not disclosed.

• OmniComm Systems (Fort Lauderdale, Florida) and eResearchTechnology (ERT; Philadelphia), a provider of technology and services that enable the pharmaceutical, biotechnology, and medical device industries worldwide to collect, interpret, and distribute cardiac safety and clinical data, reported that OmniComm has acquired the EDC business of ERT. OmniComm issued 8.1 million shares of common stock and assumed certain liabilities including deferred revenue relating to ERT's EDC business in exchange for the EDC assets of ERT, which primarily include its EDC software, applications and fixed assets and $1.15 million in cash paid by ERT.

• Zila (Scottsdale, Arizona) reported that it has entered into a definitive merger agreement with Tolmar Holding (Fort Collins, Colorado) a privately held, pharmaceutical research, development, manufacturing and commercial operations company. Under terms of the agreement, Tolmar will acquire all of the outstanding shares of Zila for a cash purchase price of $0.38 a share, representing a premium of about 18% over the closing price of Zila's shares on June 24. Total consideration to be paid by Tolmar includes the purchase of Zila's existing $12 million senior secured convertible debt at a discount.