A Medical Device Daily

Draxis Health (Mississauga, Ontario), a supplier of radiopharmaceuticals, reported that it has obtained an Interim Order from the Quebec Superior Court in connection with the proposed statutory arrangement under which all of its common shares will be acquired by Jubilant Organosys (Noida, India) for $6 per share, or a total of about $255 million.

The arrangement will be considered at the annual and special meeting of Draxis shareholders scheduled to be held on May 23.

The Draxis board recommends that its shareholders vote in favor of the transaction on the basis that it creates immediate value for shareholders. The board said it also expects the transaction to provide operational and technical resources to accelerate the growth of Draxis's business and its customer base.

Jubilant said that Draxis offers it entry into the radiopharmaceutical market. It also enables the Indian firm to consolidate its position in the sterile and non-sterile contract manufacturing business.

Jubilant said it plans to fund the acquisition through a combination of cash on hand and debt. The transaction is not contingent on any financing condition.

The transaction is expected to close in 2Q08, shortly after receipt of shareholder and court approvals.

In other dealmaking news:

• The Tri-Isthmus Group (TIGroup; Beverly Hills, California), a provider of financial solutions to the healthcare industry, has agreed to acquire Southern Plains Medical Group (Southern Plains, Oklahoma).
  The center includes 21 physicians and offers a range of services including cardiology, pediatrics, oncology, orthopedics, radiology and urgent care.
  The physician group from Southern Plains will continue to manage the new operation, supported by the Physician's Hospital of Anadarko, TIGroup's locally owned hospital and medical clinic. TIGroup also will provide financial and operating support to Southern Plains and will introduce expanded diagnostic and dialysis services to the community in addition to making new local investments in the region's healthcare infrastructure.
• Oaks Development Group (Cary, North Carolina) said it has acquired Cypress Professional Center, a 29,927-square-foot Class A medical office building located near Charlotte Regional Medical Center (both Punta Gorda, Florida).
  The property currently includes an established cardiology practice.
  The building is being converted to Oaks' tenant-ownership model. Oaks' hybrid structure is set up as a single purpose limited liability company. Tenant partners split 50% ownership interest based on how much space they occupy. While there is no capital outlay required for pro rata ownerships, tenant partners have first right of refusal on an additional 25% ownership through equity investment. Oaks retains only 25% ownership and is responsible for professionally managing the asset over the long term. Tenant partners receive distributions of operations profits as well as refinancing profits.