• CardioDynamics International (San Diego) reported 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 proprietary ICG sensors. CardioDyanmics said that the decision to spin off Vermed was based on declining margins and profits in its electrocardiogram (ECG) business and the need to focus its resources on its ICG business which has the best growth potential. The supply agreement provides for maintenance of a long-term relationship with Vermed for ICG sensors. CardioDynamics said 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. CardioDynamics manufactures non-invasive ICG products. Vermed is a supplier of disposable electrodes and related supplies used in ECG and other diagnostic procedures.
  • Inverness Medical Innovations (IMI; Waltham, Massachusetts) said it will acquire HemoSense (San Jose, California) in an all stock deal for $165 million. IMI said each holder of a share of HemoSense common stock will receive 0.274192 shares of Inverness common stock, representing a 37.5% premium, based on the average trading prices of both companies over the last five trading days. The purchase, structured as a tax-free reorganization, is expected to be slightly accretive in 2008 and accretive thereafter. The deal is subject to HemoSense shareholder approval as well as the satisfaction of regulatory and other customary conditions, and is currently expected to close in Q4. In connection with the merger, certain HemoSense stockholders have entered into voting agreements with IMI under which they have agreed to vote 33% of the outstanding shares of common stock of HemoSense in favor of the transaction. Hemosense develops handheld blood coagulation monitoring systems for monitoring patients taking warfarin.
  • Micrus Endovascular (ME; San Jose, California) said it has agreed to acquire the rights to a revascularization technology for the treatment of ischemic stroke from ReVasc Technologies (Cleveland), a start-up company affiliated with the Cleveland Clinic Foundation. The transaction will include an initial $1 million cash payment, future development milestone payments and an undisclosed royalty on potential future products sales, and is expected to close on or before Oct. 31. The transaction remains subject to customary corporate approvals and execution of definitive documents. Micrus noted that stroke is the third leading cause of death and leading cause of disability in the U.S. with about 700,000 new strokes occurring annually. Ischemic stroke accounts for about 80% of total stroke instances. Micrus develops both implantable and disposable medical devices used in the treatment of cerebral vascular diseases. Its products are used by interventional neuroradiologists and neurosurgeons to treat both hemorrhagic and ischemic stroke.
  • ScottCare (Cleveland) a company that specializes in non-invasive external counterpulsation (ECP) therapy and cardiopulmonary rehabilitation telemetry, reported that it has signed an agreement to acquire the operations of Rozinn Electronics, (Glendale, New York), a privately-held business dealing in cardiovascular diagnostic equipment. ScottCare said it will accelerate worldwide development, marketing and support for Rozinn's diagnostic product suite. including Holter for Windows Pacemaker and Event Monitoring Products. In addition, ScottCare will expand the availability of its leading cardiac rehab telemetry and ECP therapy products outside North America through Rozinn's international network of dealers.
  • Xcorporeal (Los Angeles) and CT Holdings Enterprises (CTHE; Dallas) said they have executed a merger agreement. In the deal, a reverse triangular merger, Xcorporeal will emerge as the surviving entity. Xcorporeal has developed an extra-corporeal platform technology to build devices that may potentially perform functions of various human organs. The four products that it plans to market are a hospital congestive heart failure (CHF) device; a hospital renal replacement device; a portable home hemodialysis device and a wearable artificial kidney. Under the merger agreement, CT Holdings will effect a 1-for-8.27 reverse stock split of CT Holdings' common stock prior to the merger. CT Holdings then will acquire all of the issued and outstanding capital stock of Xcorporeal, and the holders of Xcorporeal capital stock will receive an equal share of common stock of CT Holdings which will equal about 97.6% of the total issued and outstanding shares of common stock. In addition, options and warrants to purchase shares of common stock of Xcorporeal outstanding prior to the merger will be converted into options and warrants to purchase shares of common stock on the same terms and conditions. Upon close of the merger, the board of directors of CT Holdings will resign, and the current Xcorporeal directors will be appointed to the board.