- CardioDynamics International (San Diego) reported completing the sale of its Vermed unit to Medical Device Partners (Regensburg, Germany), for $8 million in cash. Additionally, CardoDynamics secured a five-year supply agreement for Vermed's ICG sensors. CardioDyanmics reported that the decision to spin off Vermed was based on declining margins and profits in its electrocardiogram (ECG) business and the need to focus limited resources on its ICG business which it believes has the best growth potential. Additionally, the supply agreement provides for maintenance of a long-term relationship with Vermed for ICG sensors. CardioDynamics said that the proceeds from the sale will be invested in the higher growth-potential ICG business; investment in clinical trial research aimed at inclusion of ICG into cardiac guidelines; and core technology improvement. Proceeds were also used to repay the company's remaining $1.4 million bank debt owed to Comerica.
- 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.
Celera also agreed to acquire Atria Genetics (South San Francisco, California), for about $33 million in cash. Atria develops human leukocyte antigen (HLA) testing products used to identify matching donors for bone marrow transplantation. The transaction is expected to close during 2Q of Celera's FY08.
- DaVita (El Segundo, California) reported that it has acquired 85% of the outstanding stock of HomeChoice Partners (Norfolk, Virginia) for about $65 million in cash. HomeChoice provides a range of infusion therapy services to patients with acute or chronic conditions that can be treated at home or at an ambulatory infusion suite.
- Hologic (Bedford, Massachusetts), a provider of diagnostic imaging and digital imaging systems for women's health completed the $70 million cash-and-stock acquisition of BioLucent (Aliso Viejo, California), acquiring that company's Mammopad business and related assets. Of the $70 million, price tag, $65 million was paid by Hologic in company shares valued at $54.222 a share, $5 million in cash. Additionally, Hologic will make up to two annual deferred cash payments not to exceed $15 million, based upon MammoPad achieving certain revenue targets. The deal was first disclosed in June. Prior to the acquisition, BioLucent completed the spin-off its brachytherapy technology and business to the holders of BioLucent's outstanding shares of capital stock to form Cianna Medical (Aliso Viejo, California). The MammoPad is used to decrease the discomfort associated with mammography.
- Inverness Medical Innovations (IMI; Waltham, Massachusetts) a maker of rapid diagnostic products, completed its $326.3 million purchase of Cholestech (Hayward, California), a provider of diagnostic tools and information for risk assessment and therapeutic monitoring of heart disease and inflammatory disorders. Cholestech stockholders received .43642 shares of IMI common stock for each Cholestech share, resulting in issuance of about 6,801,946 shares of IMI common stock. Additionally, each option to purchase shares of Cholestech common stock outstanding prior to the acquisition close was converted into a right to acquire IMI shares, at the same ratio.
- Medco Health Solutions (Franklin Lakes, New Jersey), a pharmacy benefit management firm, acquired PolyMedica (Wakefield, Massachusetts), a provider of blood glucose testing supplies and related services, for $1.5 billion in cash, about $53 a share. Medco said it will fund the transaction "through a combination of cash on hand and bank loans through our existing $2 billion revolving door credit facility. The transaction was approved by the boards of both companies. The two companies began collaborating in 2006, with Medco fulfilling more than 50,000 prescriptions each week for PolyMedica's patients. Earlier this year, PolyMedica began providing Medicare Part B administration services and supplies to some Medco clients. PolyMedica will retain its Liberty brand, a patient engagement and service model.
- Microtek Medical Holdings (Alpharetta, Georgia) reported that it has received early termination of the U.S. antitrust waiting period in connection with its pending acquisition by Ecolab (St. Paul, Minnesota) for $275 million that was first disclosed in August. Both companies' boards have unanimously approved the transaction, which is expected to close in 4Q07. Microtek, which makes surgical drapes, fluid control and other surgical supplies, will be combined with Ecolab's existing hand-hygiene, medical-instrument and environmental cleaning and disinfecting business.