A Medical Device Daily

Invitrogen (Carlsbad, California) reported that the company has completed a "significant milestone" in the integration planning for its $6.7 billion merger with Applied Biosystems (Foster City, California). The company has finalized the synergy targets by identifying specific actions and timing to achieve the synergies for all functions within the new company.

"The synergy work we've had underway for the last three months has led to a very comprehensive and robust plan that is now locked in by each operational area," said Greg Lucier, CEO/chairman of Invitrogen. "I am extremely pleased with the progress we are making. To have a week-by-week integration plan a full month before the expected close date and implementation of the plan puts us in a strong position to deliver the financial benefits of this merger."

The company provided an update on the amount of synergies it expects to achieve in the first year after close. The original expectation for year one synergies was $60 million. Invitrogen now expects this synergy realization to be at least $80 million, mostly attributable to cost savings.

The higher amount of synergies, as well as a lower-than-expected share count of 179 million shares, will lead to higher EPS growth than originally anticipated, Invitrogen said.

These positive benefits will be partially offset by recent fluctuations in currency exchange rates and an increase in the expected interest rate on the new debt. Given these changing factors, the company provided updated earnings per share guidance for FY09, assuming today's exchange rates and LIBOR rates, of at least $2.65 as compared to the original expectation of at least $2.60.

"Invitrogen is in a unique position, largely insulated, although clearly not immune, from economic turbulence and our end markets remain stable," said CFO David Hoffmeister. "As it relates to the financing of the Applied Biosystems transaction, we are well-situated with our syndication complete amongst a strong group of lenders."

Invitrogen provides life science technologies for disease research, drug discovery, and commercial bioproduction.

Spinal implant firm Life Spine (Hoffman Estates, Illinois) said it has acquired the majority of the intellectual property of Spinal Generations. Terms of the transaction were not disclosed.

According to Michael Butler, Life Spine's president/CEO, intellectual property expansion is critical. "The core of the spine marketplace is intellectual property. To this end, we have been aggressively pursuing the expansion of our intellectual property portfolio both organically and through acquisition. "

He added, "The Spinal Generations patents and products fit well with our product offering and bolster the novel portfolio of products we're currently manufacturing and selling."

In other dealmaking news, Moog (East Aurora, New York) reported that Curlin Medical (Huntington Beach, California) and Zevex (Salt Lake City) are adopting the Moog brand name. The organizations and product lines will be united to provide comprehensive access to an expanded product portfolio within a single, well-established company.

"While the existing brand names will continue to be associated with the products, this event joins three companies into one cohesive business going forward," said Martin Berardi, president of Moog's Medical Devices Group. "The introduction of the Moog brand into the medical devices market is an important step in the growth of this business."

Moog said it will continue to focus on product and service enhancements that provide improved safety and work flows for its medical device customers in the infusion, wound perfusion and enteral feeding markets worldwide.

"The introduction of a single brand simplifies and unifies our message across all Moog medical device products," added Berardi. "We have taken this step to more effectively communicate the value that we bring to all of our customers across all product lines."

Moog acquired Zevex in March 2007 for $83.8 million (Medical Device Daily, March 20, 2007). Zevex manufacturers ambulatory pumps, stationary pumps, and disposable sets used in the delivery of enteral nutrition for hospital, nursing home, neonatal and patient home use. In addition, it manufactures surgical tools and sensors and provides engineered solutions for the medical marketplace.

Moog acquired Curlin, a manufacturer of infusion pumps, for $75 million in April 2006 (MDD, April 12, 2006).