• Advanced Cell Technology (ACT; Alameda, California) completed its previously disclosed acquisition of the outstanding capital stock of Mytogen (Charlestown, Massachusetts). At the end of May, ACT agreed to acquire Mytogen and its Myoblast program for the treatment of heart failure. ACT issued about 8.2 million restricted shares of common stock, valued at $5 million, and assumed certain Mytogen liabilities totaling about $1 million. Mytogen shareholders also received a warrant to purchase another 1.5 million shares of restricted common stock at 75 cents a share, subject to the achievement of certain milestones. Mytogen's stem cell therapy involves transplantation of expanded autologous myoblasts (adult progenitor stem cells) derived from a small biopsy of skeletal muscle from a patient's leg. The technology is designed to allow for the expansion of myoblasts into hundreds of millions of cells over a period of two to three weeks. The resulting myoblasts are transplanted back into the patient's scarred heart tissue through the use of a catheter-based procedure. The Myoblast program ha completed Phasse I human clinical trials using the myoblast platform, utilizing the therapy safely in over 40 patients. ATS said the FDA has reviewed the "end-of-Phase I" data and will allow ACT to proceed with a Phase II human clinical tria and plans to begin the Phase II human clinical trial in about 160 patients. If successful, the company expects to proceed with a pivotal Phase III trial.
  • Celera (Rockville, Maryland), a business of Applera (Norwalk, Connecticut), agreed to purchase Berkeley Heart Lab (BHL; Alameda, California) for $195 million in cash. The acquisition is expected to close in 2Q08. Celera said BHL will give it entry to the estimated $7.8 billion U.S. market for "personalized" cardiovascular disease treatment. BHL provides cardiovascular risk management programs that include nutrition and exercise guidelines, medication compliance, and stress reduction, together with cardiovascular and metabolic testing.
  • Inverness Medical Innovations (IMI; Waltham, Massachusetts) a maker of rapid diagnostic products for the consumer and professional markets, reported completion of its $326.3 million acquisition of Cholestech (Hayward, California). Cholestech is a provider of diagnostic tools and information for immediate risk assessment and therapeutic monitoring of heart disease and inflammatory disorders.
  • LeMaitre Vascular (Burlington, Massachusetts) a medical devices firm, reported that it has acquired the Vascular Architects (Nashville, Tennessee) unit of The Wallace Enterprises for $2.8 million. The business consists of six surgical and endovascular tools used in the treatment of blocked arteries in the limbs. LeMaitre said the acquisition price was 60% higher than Vascular's net revenue for the past 12 months, or $1.8 million. Due to the purchase, LeMaitre increased its earnings guidance for 2007 from $39.8 million to $41.3 million. LeMaitre, a developer of vascular devices and implants employing 218, reported a net 2006 loss of $1.2 million on revenue of $34.6 million.
  • Royal Philips Electronics (Amsterdam, the Netherlands) said it will acquire Raytel Cardiac Services (RCS; Windsor, Connecticut), a division of Raytel Medical, and other operations from SHL Telemedicine (Tel Aviv, Israel), for about $110 million in cash. RCS will become part of Philips' Home Healthcare Solutions group. The deal is expected to close in the fourth quarter. RCS provides home cardiac monitoring services that doctors prescribe to heart patients. Philips said that the activities acquired are expected to have 2007 sales of about $55 million, and that it will capitalize on RCS's existing relationships with 15,000 physicians and cardiologists who serve more than 200,000 patients a year for its Lifeline products and service and its in-house lremote patient monitoring products and services. New products and services based on Philips' and SHL's products and solutions, such as congestive heart failure (CHF) monitoring in the home, are also expected to fuel growth, the company said. Given that Philips Lifeline's 750,000 subscribers often suffer from a variety of chronic illnesses, including CHF, Philips said it expects they also will benefit from a cardiac monitoring service supported by trained cardiac technicians that Raytel offers.
  • ev3 (Plymouth, Minnesota) and FoxHollow Technologies (Redwood City, California) said they have completed their $780 million cash/stock merger. ev3 has acquired all of FoxHollow's common stock, and FoxHollow is now a subsidiary of ev3. The merger creates a company with a market capitalization of about $1.7 billion. The combined portfolio will include products to treat diseases in both the peripheral and neurovascular markets, including atherectomy and thrombectomy, PTA balloons, stents, embolic protection devices, infusion catheters/wires, embolic coils and liquid embolics."This merger brings together two industry leaders who share a deep commitment to advancing the treatment of peripheral and neurovascular disease, creating a single, best-in-class technology resource for specialists who treat endovascular disease," said Jim Corbett, CEO/chairman of ev3. ev3 is focused on endovascular technologies for the minimally invasive treatment of vascular diseases. FoxHollow develops minimally invasive devices for the removal of plaque and thrombus for the treatment of peripheral artery disease.

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