A Medical Device Daily

RTI Biologics (Alachua, Florida), a processor of orthopedic, dental, hernia and other biologic implants, said it has signed an expanded agreement with Davol (Warwick, Rhode Island), a subsidiary of C.R. Bard (Murray Hill, New Jersey).

RTI will supply Tutoplast sterilized dermal allografts for exclusive worldwide distribution by Davol for breast reconstruction applications. The agreement also extends Davol's exclusive worldwide distribution rights for dermal allografts for use in hernia repair for 10 years, the company said.

The new agreement includes a payment for exclusive distribution rights in the breast reconstruction market and potentially two additional payments based on growth milestones in the hernia and breast reconstruction markets.

"We are pleased to expand our relationship with Davol to include the exclusive distribution of human donated dermis for breast reconstruction applications," said Brian Hutchison, RTI's CEO and chairman. "Since our merger with Tutogen [Alachua, Florida] last year, our hernia repair distribution has seen excellent growth, and we look forward to reaching more patients with safe, high quality biologic solutions in hernia and breast reconstruction with an industry leading distributor like Davol."

In other dealmaking activity, Gentiva Health Services (Atlanta), a provider of home health services, said it has agreed to buy Magna Home Health (Broken Arrow, Oklahoma), a part of the Rush Health System in central Mississippi and west central Alabama. Both states require a certificate of need (CON) by county to participate in the home health program.

With the addition of Magna's locations in Meridian, Mississippi, and Gilbertown, Alabama, Gentiva will expand its coverage with seven new CON counties. Gentiva said it already has a significant presence in these states under the Gilbert's brand in Mississippi and the Mid South brand in Alabama.

The purchase is expected to close in 3Q09 and will be funded from Gentiva's existing cash reserves. The acquisition is not expected to have a material impact on Gentiva's financial position or results of operations in 2009.