A Medical Device Daily
Allscripts-Misys Healthcare Solutions (Chicago) reported that it has reached an agreement in principle, subject to negotiation of and entry into a definitive agreement, to sell its Medication Services business for an undisclosed amount.
Closing of the transaction is expected to be subject to customary closing conditions, but no assurances can be given that a definitive agreement for the sale will be entered into or that the conditions to consummating the transaction contained in any such definitive agreement will be met.
Allscripts' Medication Services business, or prepackaged medications segment, provides point-of-care medication management and medical supply services and solutions for physicians and other healthcare providers.
"The proposed sale of our Medication Services business increases our focus on our core healthcare information technology businesses at a time when we expect electronic health records and electronic prescribing, along with our interoperability and connectivity efforts, to receive a substantial boost from the federal economic stimulus package," said Glen Tullman, CEO of Allscripts. "We want the total focus of the business to be on taking advantage of this opportunity to accelerate growth. The transaction would also provide the Medication Services business with an opportunity to invest and grow with the total focus of the new company."
As part of the transaction, Allscripts intends to continue to offer medication services to existing and future clients of Allscripts under a co-marketing agreement.
Emageon (Birmingham, Alabama) a developer of enterprise medical information technology systems for hospitals and healthcare networks, reported that it has been informed by Health Systems Solutions (HSS; Tampa, Florida) that it did not expect that Stanford International Bank (SIB) will provide the funding necessary to consummate the parties' merger transaction yesterday.
The merger was scheduled to close Feb. 11, in accordance with the terms of the parties' amended merger agreement. Emageon said it was evaluating its options in response to this development.
HSS had first disclosed its intention to acquire Emageon in October for $62 million in cash (Medical Device Daily, Oct. 15, 2008), but ran into trouble in December when its primary funding source, SIB, said it would not provide the funding to consummate the deal between the two companies at that time (MDD, Dec. 30, 2008).
In other dealmaking news, Creganna (Galway, Ireland) reported that it has acquired the technology and patents of Micromuscle (Linköping, Sweden). Micromuscle is an advanced, biocompatible electroactive polymer that exhibits physical functionality similar to a human muscle and can be incorporated into medical devices. The technology enables both controlled movement of a device and the active controlled release of substances from a device, the companies said.
The discovery of ground-breaking electroactive polymers (EAP) was awarded the Nobel Prize in 2000. Micromuscle is the most advanced application of EAPs for the medical device arena, particularly for minimally invasive therapies.
The technology, patents, brand and trademarks of Micromuscle were acquired by Creganna after the withdrawal of a significant venture capitalist forced the Swedish company to seek voluntary liquidation. Creganna has retained technical personnel of Micromuscle to conduct a technology transfer and is engaged with former customers of Micromuscle to continue development projects incorporating the EAP technology.
"Micromuscle technology is the perfect fit for Creganna and for our customers" said Alan Crean, Director of Business Development at the company. "Creganna have a reputation for excellence in the creation, design and manufacturing of delivery and access devices. Micromuscle technology enables advanced functionality in these types of devices, for example, it demonstrates potential to enhance steerability and deliverability. By offering this technology platform to our customer base we expect it will enable some exciting new design possibilities."
Creganna develops technologies for medical device and lifescience companies.