A Diagnostics & Imaging Week

HealthTronics (Austin, Texas) reported that it has acquired UroPath (Arlington, Texas) for $7.5 million.

Founded in 2003, UroPath provides anatomical pathology lab services in the U.S. In 2007, labs managed by UroPath processed more than 400,000 specimens, serving more than 50 urology practices with more than 450 physicians across 17 states.

UroPath's operating model is focused on the patient benefits of a more disease-focused diagnosis capability for prostate health, with greater involvement by the urologist who often acts as the primary care physician when dealing with prostate disease.

Effective Jan. 1, the Centers for Medicare & Medicaid Services (CMS) amended existing healthcare regulations to establish limits on the amount a provider can bill Medicare for pathology services under certain conditions. These regulations limit the Medicare reimbursement for Medicare reimbursed pathology services provided in pathology laboratories UroPath manages.

On June 30, CMS proposed additional amendments to these regulations which could further affect the way in which pathology services may be reimbursed.

James Whittenburg, CEO of HealthTronics, said, "We believe UroPath's historical model provides greater continuity in the handling of specimens, increased communication between specialists in the continuum of care, and improved focus on the needs of the patient."

He added, "We believe we achieve many of the same benefits in our other urology services platforms, including lithotripsy, cryo surgery, BPH laser surgery and radiation therapy. UroPath's decision to join HealthTronics affirms the prominent and unique role that we play in urology today."

In other dealmaking activity:

• iCAD (Nashua, New Hampshire), a provider of computer-aided detection (CAD) solutions, reported completing its previously announced agreement to purchase the principal assets of privately held CAD Sciences (White Plains, New York). The purchase price was $5 million, comprised of $2 million in cash and 1,086,957 shares of iCAD common stock.

Ken Ferry, president/CEO of iCAD, said, "iCAD's acquisition of CAD Sciences broadens our leadership position beyond mammography CAD and provides a comprehensive portfolio of advanced image analysis and workflow solutions for the early detection of the most prevalent cancers. Magnetic resonance imaging and computed tomography are demonstrating significant advances in the imaging sector and this acquisition now extends our reach in the imaging modalities of CT and MRI, in addition to our expertise in film-based, digital radiography and computed radiography."

The number of shares issued was calculated using the average closing price for the 10 consecutive trading days immediately preceding the closing.

• Biomagnetics Diagnostics (Orangevale, California) said it has signed a letter of intent to acquire Global Operational Resources Group (GORGRP).

Biomagnetics is a provider of diagnostic equipment and highly specific and sensitive assays designed to be qualitative and quantitative, easily performed and cost-effective.

GORGRP provides tactical, operational, and support personnel, training, and logistical services to military, government, and numerous international companies to provide both medical services and training in remote, high-hazard, and special threat medical care, SERE and personnel survival, and tactical rescue.

• Hologic (Bedford, Massachusetts) and Third Wave Technologies (Madison, Wisconsin) reported that the initial offering period of Hologic's tender offer for all outstanding shares of common stock of Third Wave has expired.

The depositary for the offer has advised Hologic that, as of the expiration of the initial offering period, roughly 45,225,950 Third Wave shares were validly tendered to Hologic's Thunder Tech subsidiary and not withdrawn, representing about 92.1% of the outstanding common stock of Third Wave. Thunder Tech has accepted for payment all Third Wave shares that were validly tendered during the initial offering period.

Hologic also said that Thunder Tech has begun a subsequent offering period for all remaining shares of Third Wave common stock to allow stockholders who have not yet tendered their shares the opportunity to do so. This subsequent offering period will expire at midnight EST on July 23, unless further extended.

The same $11.25-a-share price offered in the prior offering period will be paid during the subsequent offering period, the company said.

Hologic said it expects to merge Thunder Tech into Third Wave. Thunder Tech will acquire all other Third Wave shares at the same $11.25 a share price, without interest and less any required withholding taxes, that was paid in the tender offer. Third Wave will become a subsidiary of Hologic.

Hologic develops diagnostics, medical imaging systems and surgical products dedicated to serving the healthcare needs of women.

Third Wave develops molecular diagnostic reagents for a variety of DNA and RNA analysis applications to meet the needs of its customers.

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