A Medical Device Daily

Covidien (Hamilton, Bermuda) reported that it had completed the previously disclosed sale of its Retail Products business (King of Prussia, Pennsylvania) to an affiliate of First Quality Enterprises (Great Neck, New York) for $330 million in cash (Medical Device Daily, Dec. 18, 2007).

The sale of Retail Products is part of Covidien's strategy to focus its portfolio and reallocate resources to its core healthcare business. The company said this portfolio strategy also includes the previously reported definitive agreement to sell its European Incontinence business, as well as the plan to divest its Specialty Chemicals business.

Covidien makes product lines in four segments: medical devices, imaging solutions, pharmaceutical products and medical supplies.

Kinetic Concepts (KCI; San Antonio (NYSE: KCI) reported that it has initiated its tender offer for all outstanding shares of LifeCell (Branchburg, New Jersey) common stock at a price of $51 a share.

Earlier this month, KCI reported that it would acquire Lifecell, a maker of tissue-repair products for use in reconstructive, urogynecologic and orthopedic surgical procedures, for about $1.7 billion in cash (MDD, April 8, 2008).

The tender offer is scheduled to expire at 12 midnight, EST, on May 16 unless it is extended.

In other financing news:

• Monroe Capital (Chicago) reported its participation as a co-lender with CIT Healthcare, as agent, in a $39 million senior secured credit facility in connection with the acquisition of MedPlast (Tempe, Arizona) by private equity firm Baird Capital Partners (Chicago). MedPlast said it will use the facility to provide financing for the acquisition and ongoing working capital.

Baird formed MedPlast to acquire and combine Applied Technical Products (Wayne, Pennsylvania) and K&W Medical Specialties (Westfield, Pennsylvania).

MedPlast is a fully integrated specialty manufacturer, primarily serving the medical device industry, of precision molded plastic and rubber components with tooling and molding expertise, clean room capabilities, integrated assemblies and design capabilities. It will operate five plants across the U.S. with about 800 employees.

• Theranostics Health (Rockville, Maryland) reported that it has received an exclusive license from the National Institutes of Health (NIH) to commercialize microdissection including laser capture microdissection (LCM) combined with protein analysis for cancer diagnostics and companion diagnostics.

Theranostics will pay NIH undisclosed license issue royalties, minimum annual royalties, benchmark and earned royalties upon successful commercialization of the technology.

Theranostics said its technology measures the activity of a large number of biomarkers, enabling pharmaceutical companies to accurately profile their drug candidates to facilitate efficient and effective drug development.