A Medical Device Daily

I-Flow Corporation (Lake Forest, California) reported that it has agreed to acquire AcryMed (Beaverton, Oregon), a private developer of infection control and wound healing products. AcryMed shareholders will receive $25 million in cash from I-Flow in the merger.

AcryMed developed the proprietary nanoparticle treatment process for the silver coating on I-Flow's ON-Q SilverSoaker Catheters and has been treating the catheters since I-Flow developed the product line in 2005.

AcryMed also will manufacture for I-Flow a new line of silver transparent wound-site dressings, which I-Flow expects to bring to market early next year. In addition to providing silver coating for these I-Flow products, AcryMed is active in researching and developing new wound care technologies and has licensed a portion of these technologies for a range of infection control and wound care products.

AcyrMed's patent portfolio consists of a total of 66 issued and pending patents, including 16 U.S. patents. In addition, their scientific staff includes four Ph.D.s and 10 other scientists who have made AcryMed a leader in silver antimicrobial technologies.

I-Flow said that the acquisition will provide it with synergies in the treatment of its ON-Q SilverSoaker Catheters and transparent wound dressings, as well as expand I-Flow's strategic focus to include general surgical site care management in addition to its leadership position in regional anesthesia for post-surgical pain management.

Donald Earhart, CEO and chairman of I-Flow, said that the acquisition "and the personal commitment of AcryMed's leaders, Dr. Bruce Gibbins and Jack McMaken, to join forces with I-Flow's team, are critical and exciting steps in our plan to expand into wound care products and new technologies in this important arena. AcryMed is a pioneer at the forefront of innovations in the fields of infection control and wound healing. The company's SilvaSorb products for advanced wound care and SilvaGard® nanoparticle surface treatment for medical devices are among the silver-based technologies that have distinguished AcryMed as a leading innovator in the industry."

He said this is especially significant, given the recent announcement by the Centers for Medicare and Medicaid Services that, for discharges occurring on or after Oct. 1, 2008, hospitals will not receive additional payment for treatment of unnecessarily acquired hospital infections. "This acquisition allows I-Flow to take more control over our expansion into an even bigger addressable market for the ON-Q franchise and will provide us with more innovative new products for our existing ON-Q sales force to sell," he said.

The agreement contemplates the merger of a new subsidiary of I-Flow into AcryMed, with AcryMed being the surviving corporation as an I-Flow subsidiary.

Assuming satisfaction of various conditions, I-Flow said the acquisition should be ocmpleted in 1Q08.

I-Flow also expects that Gibbins, AcryMed's founder, CTO and chairman, and McMaken, its president/CEO, will enter into new, full-time employment agreements.

I-Flow develops drug delivery systems.

In other dealmaking news:

  • Accelr8 Technology (Denver) reported that Becton Dickinson (BD; Franklin Lakes, New Jersey) purchased an exclusive right to negotiate for a relationship to develop Accelr8's BACcel rapid diagnostic platform. BD will pay Accelr8 $100,000 for this right. The right grants BD an exclusive discussion period through March 31, 2008, for the companies to explore a product development relationship that may include licensing, equity investment, joint development or other development and commercialization program. David Howson, Accelr8's president, said that the agreement "demonstrates serious interest in our rapid diagnostic platform by a leader in the clinical diagnostics market. BD recognizes the potential value of the BACcel system as a 'fast front end' that complements their automated culturing systems and gene analysis products. The BACcel system uniquely addresses a critical need in hospital ICUs that no other technology now addresses. We target hospital acquired infections (HAI) and antibiotic resistance in pathogens that include the worst multi-resistant so-called 'superbugs' such as: MRSA, Acinetobacter, Pseudomonas, and emerging strains of Klebsiella and E. coli. Accelr8 develops materials and instrumentation for applications in medical instrumentation, basic research, drug discovery, and bio-detection.
  • NovaMed (Chicago) reported that it will close or sell three ambulatory surgery centers located in Laredo, Texas, Thibodaux, Louisiana, and Columbus, Georgia, representing about 2% of NovaMed's net revenue and an after-tax loss of just over $0.01 a diluted share for the nine months ended Sept. 30. NovaMed owns 96% of the Laredo, Texas, facility; 70% of the Thibodaux, Louisiana, facility; and 71.5% of the Columbus, Georgia, facility. NovaMed said it decided to close or sell two of these ambulatory surgery centers due to their unprofitability. The third ambulatory surgery center is in Thibodaux, Louisiana, and its only surgeon is planning to retire shortly. NovaMed said that if it is unable to sell its interests in these facilities, it will work with its remaining partners in the facility to cease operations and liquidate its assets. NovaMed said it will record an after-tax loss of $11.5 million to $12.5 million in 4Q07, the difference between the net book value of these businesses and the estimated sales prices. NovaMed also expects to incur additional costs associated with these disposals, including lease termination costs, early contract termination costs and employee severance costs, not to exceed $500,000.