A Medical Device Daily

StemCells (Palo Alto, California) said it is “exploring” the acquisition of Progenitor Cell Therapy (PCT; Hackensack, New Jersey), and that the acquisition terms are still being negotiated.

The potential acquisition would combine PCT’s CGMP-quality cell processing and contract manufacturing business with the cell-based R&D programs of StemCells.

StemCells said that PCT has agreed to a period of exclusivity to allow the parties to complete due diligence and negotiate agreements for the proposed transaction. StemCells has agreed to make a secured loan of $3.8 million to PCT to bridge some of PCT’s planned capital needs as it pursues its own growth strategy.

StemCells has a contract with PCT for various cell processing services, including for the processing of HuCNS-SC cells used in the company’s ongoing Phase I clinical trial for neuronal ceroid lipofuscinosis (NCL), often referred to as Batten’s disease).

StemCells is a clinical-stage biotechnology company focused on the development of cell-based therapeutics to treat diseases of the nervous system, liver and pancreas.

PCT says it provides cost-effective, turnkey solutions for the development of cell-based therapies.

In other dealmaking news:

• GeoPharma (Largo, Florida) reported an agreement with the University of South Florida Research Foundation (Tampa) to acquire worldwide patent rights for a diagnostic technology for early-stage detection of ovarian cancer using patient urine samples. Terms of the acquisition were not disclosed.

GeoPharma makes over-the-counter, nutritional, generic drug and functional food products, as well as, health and beauty products for companies.

• Tenet Healthcare (Dallas) reported the sale of Shelby Regional Medical Center (Center, Texas), a 54-bed acute care hospital, to Shelby Medical Holdings, a newly formed company owned by Tariq Mahmood, MD. Year-to-date, the hospital has had an average daily census of eight.

Pre-tax proceeds from the sale are about $2 million. The proceeds will be used for general corporate purposes, Tenet said.

Tenet first disclosed the agreement to sell the hospital in October (Medical Device Daily, Oct. 4, 2007).

Tenet said that remaining for sale are three acute care hospitals: Encino-Tarzana Regional Medical Center – Encino campus (Los Angeles); Encino-Tarzana Regional Medical Center – Tarzana campus (Los Angeles); and North Ridge Medical Center (Ft. Lauderdale, Florida).

Tenet said discussions with potential buyers for these hospitals are ongoing.

• HCA (Nashville) reported the sale of Cedars Medical Center (Miami, Florida) to the University of Miami for about $260 million.

HCA said it signed a letter of intent to pursue the sale on March 26.