A Medical Device Daily
Boston Scientific (Natick, Massachusetts) reported the sale of Boston Scientific Santa Rosa (Santa Rosa, California), formerly known as TriVascular, to privately held TV2 Holding (Santa Rosa).
The Boston Sci unit holds equipment and intellectual property related to the TriVascular endovascular aortic repair (EVAR) program, acquired in 2005 (Medical Device Daily, April 19, 2005). Boston Scientific discontinued its EVAR program in 2006.
Sale terms include $30 million in cash, paid at closing, and a warrant allowing Boston Scientific to purchase a minority interest in TV2.
The company said it sold the division as part of its effort to sell off non-strategic assets. The company reported late last year that it would lay off more than 2,000 employees globally in a restructuring (MDD, Oct. 19, 2007).
"The sale of this business is the latest example of Boston Scientific's commitment to divesting non-strategic assets," said Jim Tobin, president/CEO of Boston Sci. He said that the divestitures and head count reductions "are helping realign our cost structure and simplify our operating model [to achieve] our overall goals of restoring profitable growth, increasing shareholder value and strengthening Boston Scientific ... ."
In other dealmaking news:
• Global Med Technologies (Denver), an e-health company, said it has agreed to acquire Inlog (Lyon, France) and its German and related subsidiaries, a private European medical software firm, for a maximum of $11.5 million in cash, stock and earnout.
Global Med said it will utilize a combination of existing cash and debt to pay for the transaction, expected to close in 2Q08. Inlog's management plans to stay with the company, Global Med said.
Inlog's shareholders must use $500,000 of the cash proceeds to purchase Global Med common stock in the open market within three months of the closing. Inlog's unaudited revenues for their fiscal year ended June 30, 2007 were about 17.3 million ($11.4 million).
Inlog is a provider of donor center and transfusion information management systems, laboratory information systems and other ancillary medical softwares.
• DRI Capital (Toronto) and Nanogen (San Diego) have entered an agreement for DRI to acquire, for $10 million, all future royalties generated by Applied Biosystems (AB; Foster City, California) under a license AB has taken from Nanogen for minor groove binder (MGB) technology.
"Monetizing this royalty stream provides us with a non-dilutive means of raising capital to fund our operations as we work towards achieving cash flow breakeven in late 2008," said Howard Birndorf, Nanogen CEO andchairman.
The royalties included in the agreement are related to Nanogen's MGB technology that has been licensed to AB for use in its TaqMan products.
Nanogen has a product and proprietary technology base of diagnostic solutions for two in vitro diagnostic (IVD) markets: molecular diagnostics and rapid point-of-care testing.
• Manhattan Scientifics (MS; New York) reported an agreement with Dr. Terry C. Lowe, president of Metallicum (Santa Fe, New Mexico), to acquire Metallicum and its patent rights to produce and market NanoTitanium and other ultra-fine grain nano-structured metals. Financial terms of the merger were not disclosed.
MS said it plans to form a new Advanced Technologies division focused on advanced science for medicine.
NanoTitanium, MS said, is highly compatible with bone and thought to provide stronger, faster bonding with greater strength and improved wear and tear.