A Medical Device Daily

Olympus (Tokyo) said that it intends to acquire all the ordinary shares of medical manufacturer Gyrus Group (Wokingham, UK).

Gyrus' board has recommended acceptance of the Olympus offer of 630 pence per ordinary share, which values the existing issued share capital of Gyrus at roughly £935 million. The transaction is expected to close in the first half of 2008.

In accordance with UK Takeover Panel regulations, Olympus and Gyrus jointly reported the recommended cash acquisition of Gyrus by Olympus in the London market.

Gyrus manufactures radio frequency devices and energy-based technologies for minimally invasive surgical systems.

Olympus said the acquisition will generate strong synergies, while creating a medical systems business with revenues of about 360 billion yen that "solidifies" its capabilities in minimally invasive products.

The operations of Gyrus' and Olympus' medical systems are highly complementary," said Tsuyoshi Kikukawa, president of the Japanese firm. "I am confident that this planned partnership will generate significant synergies and opportunities for both firms."

He said the combination of the firms' technological capabilities "will further enhance product systems, which I expect will enable surgeons and their staffs to ultimately perform safer and more effective surgical procedures with better patient outcomes."

In May 2006, Olympus launched a strategic plan to optimize corporate value. One goal of the three-year initiative is to build a platform for higher growth and earnings from the company's Medical Systems business.

The company said the global medical equipment market "continues to expand, particularly for minimally invasive systems that reduce pain and discomfort from surgery, due to aging populations in Japan and other advanced nations and improving standards of medical care in developing countries."

Olympus said it intends to draw upon Gyrus' capabilities to accelerate development and commercialization of energy-based technology equipment. It said it believes an expanded position in medical systems will enable the company to "reinforce its reputation for highly reliable and efficient patient care technologies."

The Japanese firm said it expects to expand its worldwide marketing network, particularly in urological and gynecological systems, in which Gyrus has an established presence in the U.S. market.

Colplast to acquire Levera technology

Coloplast (Copenhagen, Denmark) said it has signed an agreement with Caldera Medical (Agoura Hills, California), transferring substantially all assets related to the Levera male incontinence treatment from Caldera to Coloplast.

The companies said the Levera therapy represents the "next generation" of sling therapy addressing symptoms of male stress urinary incontinence (SUI). Coloplast said it is a "key element" in the continued expansion of the company's surgical portfolio for men's health.

Currently in final stages of development, the Levera system offers what Coloplast characterized as "a superior alternative to traditional surgical modalities."

The Levera therapy involves placement of a support, or sling, near the urethra, restoring it to a more normal position. The sling exerts pressure on the urethra to improve continence.

A similar approach is widely used for women with SUI, and the Levera Male Incontinence Therapy is expected to raise the bar for male sling therapy, Coloplast said.

The company said the new treatment "is being driven by input from a team of urology experts in the field of male incontinence therapies." Craig Comiter, chief of the Section of Urology at the University of Arizona (Tucson), said, "Clearly there is a need for more advanced approaches in the treatment of male SUI. Levera represents the potential for a minimally invasive surgical procedure that will improve upon the results of the first-generation male slings. It should be a welcome addition to the urologist's armamentarium for men who suffer from incontinence."

Other physicians involved in the product's development include Victor Nitti, MD, professor and vice chairman of urology at New York University, and Eugene Rhee, MD, associate chief of urology, at Southern California Permanente Medical Group.

In the U.S. and Europe alone, more than 3.5 million men suffer from SUI.

"Coloplast intends to lead the market in developing and introducing next- generation surgical therapies for disorders affecting the daily lives of both men and women," said Lars Rasmussen, group executive vice president. "An advanced male sling therapy represents a significant step in equipping the surgeon with leading-edge procedures for improving the lives of men."

He added: "Caldera Medical has shown great foresight in sponsoring the development of this unique solution for male SUI, and, along with a team of leading urologists, Coloplast will continue the development to its successful clinical conclusion."

Coloplast's business areas include ostomy care products; urology and continence care products; and products for wound and skin care.

Harvard Bioscience acquires Spanish firm

Harvard Bioscience (Holliston, Massachusetts) reported completing the purchase of Panlab (Barcelona, Spain) in a cash deal valued at about $5 million.

Panlab develops products and software for life science researchers, primarily in the neuroscience sector.

"With the acquisition of Panlab, we are able to expand our distribution channels by establishing a subsidiary in Spain. In addition, the acquisition provides us access into a segment of the neuroscience research market which we estimate to be between $35 million and $70 million," said Chane Graziano CEO of Harvard Bioscience.

He added, "The acquisition also strengthens our Harvard Apparatus franchise for specialty products within the life science research market. We expect annualized revenues of this acquisition to be between $8 million and $10 million at current exchange rates and the full-year impact for 2008 on our non-GAAP adjusted earnings per diluted share to be between 3 cents and 4cents a share. We also expect the acquisition will be accretive to our non-GAAP earnings per diluted share for the fourth quarter of 2007."

Harvard Bioscience manufactures specialized products, primarily scientific instruments and apparatus, used to do life science research at pharma and biotech companies, universities and government laboratories worldwide.