A Medical Device Daily

Mindray Medical International (Shenzhen, China) said it has completed its acquisition of Datascope's (Montvale, New Jersey) patient monitoring device business. The deal was first disclosed in March (Medical Device Daily, March 12, 2008).

The deal has a pre-tax value to Datascope of $240 million. Mindray paid $209 million in cash and Datascope retained about $31 million in patient monitoring accounts receivable.

The combined business benefits from Mindray's integrated engineering and manufacturing platforms, Datascope's established brands, reputable products and services and extensive direct sales and service capabilities in the U.S. and Western Europe, the company said.

"This transaction ensures sustainable high growth for our international business and gives us immediate access to an established network of hospital customers in the U.S., the world's single largest healthcare market," said Xu Hang, Mindray's co-CEO/chairman. "We're optimistic about the growth potential of our combined business and believe we are now even better positioned to address the growing trend of cost-conscious healthcare spending worldwide."

Mindray said it expects to achieve more than $30 million in run-rate synergies from the acquisition in the areas of manufacturing, SG&A and R&D in 2011.

Mindray offers products across three primary business segments: patient monitoring & life support products, in-vitro diagnostic products, and medical imaging systems.

In other dealmaking news:

• Touch Bionics (Newburgh, New York), developer of the I-Limb Hand, a multi-articulating bionic hand, said it has acquired the complete operations of Livingskin (Linvingston, Scotland), the developer of the prosthetic skin that Touch Bionics supplies with its product. The company said the acquisition would allow it to "fulfill growing customer demand from across the world."

In addition, the acquisition of Livingskin's operations (Aesthetic Concerns Prosthetics) provides Touch Bionics with an established physical presence in North America, the company said. Prosthetic and Orthotic Associates, the clinical company previously associated with Livingskin, is not included in the acquisition and continues to operate independently of the newly combined business, Touch Bionics noted.

To finance the deal and provide further U.S. expansion funding, Touch Bionics raised additional capital through existing investors, Archangel Informal Investment, TriCap and Scottish Enterprise's co-investment fund.

• McKesson (Atlanta) said it has acquired Vivalog (Seattle), a provider of web-based solutions, including its MyPACS.net medical imaging reference site, designed to enable imaging specialists to efficiently organize and share image and reference case information needed during daily practice. According to the company, this portfolio extends current hospital imaging and information management systems with reference case management and clinical conferencing capabilities that result in rich, multimedia knowledge repositories to assist in diagnostics as well as research and training.

McKesson is a healthcare services and information technology company.

• HemoBioTech (Dallas) reported getting an exclusive worldwide license from Texas Tech University (Lubbock) for a new technology that addresses the safety of animal-derived products for human use in pharmaceutical, cosmetic and other industries.

According to the company, the new technology could prevent the spread of transmissible spongiform encephalopathies (TSE), also know as prions or mad cow disease, as well as viruses. It is being used in the manufacturing of HemoBioTech's lead product HemoTech, a potential substitute for human blood composed of chemically modified bovine hemoglobin.

The new purification technology, called "Orthogonal Method for the Removal of Transmissible Spongiform Encephalopathy Agents from Biological Fluids," could allow robust and reliable elimination of infectious agents, such as prions and viruses from the final product, using independent clearance steps, inactivation and removal, HemoBioTech said.