A Medical Device Daily

Symmetry Medical (Warsaw, Indiana), an independent provider of products to the global orthopedic device industry and other medical markets, reported that it has entered into a definitive agreement to acquire Specialty Surgical Instruments (SSI) and Ultra Containers of America (UCA; both Nashville, Tennessee), a provider of specialty surgical instruments and sterilization containers, for $15.1 million in cash on a debt free basis, subject to certain adjustments.

Symmetry has also entered into a two-year agreement for a potential earn out with SSI and UCA. The acquisition is expected to close by Sept 30.

SSI offers targeted sales, marketing and distribution programs to serve the surgical specialties of neurological, spine, orthopedics, cardiovascular, ENT, laparoscopy and ophthalmology. The company’s portfolio includes its own line of Ultra Instruments and includes the UCA-Ultra Container system, a hospital-proven, closed container system that is designed to store and transport sterilized instruments.

The Ultra Instruments and UCA-Ultra Containers are offered through SSI distribution channels and will continue with Symmetry Medical. SSI’s Ultra Instruments and Ultra Containers will now be part of Symmetry Medical’s standard products.

SSI and UCA reported 2006 revenues of about $21 million. SSI has an in-house sales staff of 25 representatives.

“SSI is an excellent strategic fit for Symmetry Medical. This acquisition will be consistent with our long-term efforts to further diversify our business into other medical device markets and helps strengthen our competitive advantage as a Total Solutions provider,” said Brian Moore, president/CEO of Symmetry. “SSI’s strong distribution channels offer the opportunity to increase our penetration directly into hospitals and deliver additional cross-selling opportunities to our customers. Further, the acquisition will extend Symmetry’s product reach into surgical specialties where we previously had limited presence, including cardiovascular, ENT and ophthalmology.”

ParagonDx (Morrisville, North Carolina), a developer of genetic and molecular testing diagnostics, has acquired the assets of Gentris Diagnostics (Morrisville, North Carolina), a subsidiary of Gentris.

As a stand-alone company, ParagonDx will focus on developing molecular diagnostic products for laboratories. These products are intended to enhance medical care by providing early diagnostic information rapidly.

Michael Murphy, former president/CEO of Gentris, will serve as the president/CEO of ParagonDx.

Among the key assets ParagonDx purchased from Gentris Diagnostics were the first six FDA-cleared human genomic reference controls and 46 other reference control products currently being sold to reference laboratories and diagnostic product developers. Reference controls help assure the quality of genetic tests, while pharmacogenomic tests explain how an individual’s genetic makeup affects their response to drugs.

Another asset acquired in the deal is a new in vitro diagnostic test to determine a safe starting dose of warfarin, a blood thinner that prevents and treats blood clots.

The formation of ParagonDx comes in the wake of the announcement earlier this month by the FDA to update warfarin’s label to include genetic testing information (Medical Device Daily, Aug. 20, 2007).

In the future, the company said it plans a series of products for molecular testing.

Joe Sorge, founder and former CEO of Stratagene (La Jolla, California), a company that sold research reagents and equipment to the life sciences industry before it was acquired by Agilent (Santa Clara, California) in June, has assumed a controlling interest in ParagonDx. Gentris will retain a minority stake in the new company.

In other dealmaking news:

• RoundTable Healthcare Partners (Lake Forest, Illinois), an operating-oriented private equity firm focused exclusively on the healthcare industry, reported that it has entered into a definitive agreement to sell one of its portfolio companies, MedAssist Holding (Louisville, Kentucky), to an affiliate of Firstsource Solutions (Mumbai, India) for $330 million in cash.

Firstsource provides business process management services to global leaders in banking & financial services, telecom & media and healthcare.

MedAssist is a provider of outsourced revenue cycle management services to the healthcare industry, including eligibility services, receivable management services, and collections services.

• Signature Hospital Corp. (Hosuton) was selected yesterday to purchase and lead Rockdale Medical Center (Conyers, Georgia) by the Board of Trustees of the Hospital Authority of Rockdale County and the Board of Directors of Rockdale Medical Center.

The decision is the first step of a public approval process that is expected to take several months. The purchase of the hospital by Signature for about $90 million requires the review and approval of the Attorney General of the State of Georgia.

Located about 25 miles east of Atlanta, the 138-bed hospital provides acute care, diagnostic, emergency and outpatient services.

Signature has committed to additionally invest at least $32 million in the hospital over the next five years in capital expenditures to include facility improvements and expansion of services, new medical equipment and for other hospital needs.