A Medical Device Daily

Inverness Medical Innovations (IMI; Waltham, Massachusetts) reported the successful completion of its acquisition of Biosite (San Diego), at a price of $92.50 per share.

IMI completed the acquisition, which was finalized back in May (Medical Device Daily, May 11, 2007) through a cash tender offer and a subsequent merger of a wholly owned subsidiary with and into Biosite.

“We are very pleased to complete our acquisition of Biosite and, thanks to the solid groundwork already laid by our integration teams, we are ready to commence what we expect to be a very smooth and rapid integration process. As a combined entity, we can now begin leveraging our expanded product pipeline to enhance our strategic position and long-term growth opportunities in the cardiology field,” said Ron Zwanziger, president/CEO and chairman of IMI.

As a result of the merger, all outstanding shares of Biosite common stock not validly tendered and accepted for payment in the tender offer were converted into the right to receive $92.50 per share in cash, without interest. The depositary for the tender offer and the disbursing agent for the merger will mail to non-tendering stockholders materials necessary to exchange Biosite stock certificates for such payment. Biosite shares ceased trading at the close of business this past Thursday and will be delisted from the NASDAQ.

IMI, a developer of advanced diagnostic devices beat out rival Beckman Coulter (Fullerton, California) in May after a two-month bidding war that saw the value of Biosite’s shares increase by $7.50.

Beckman Coulter has originally agreed to acquire Biosite back in March for $85 a share, a 53% premium over the stock closing price at the time of the offer (MDD, March 26, 2007).

ATS Medical (Minneapolis) reported the completion of its $22 million all-cash acquisition of the surgical cryoablation business of CryoCath Technologies (Montreal) was first reported late last month (MDD, June 21, 2007). With milestone payments, the agreement could increase in value to reach a total of $30 million.

The assets being acquired include the SurgiFrost, FrostByte, and SurgiFrost XL family of products for which ATS Medical has been CryoCath’s exclusive agent in the U.S. and distributor in certain international markets since November 2004.

“As we discussed in our press release and conference call last week, this is a transformational event for ATS Medical,” said Michael Dale, president/CEO of ATS, We will dramatically leverage our current operating infrastructure and firmly position ourselves in the rapidly-growing, $1.5 billion cardiac arrhythmia treatment market.”

He also noted that the transaction “adds to our revenue base immediately, accelerates our revenue growth rate in the future, and significantly diversifies our portfolio of proprietary high margin products while shortening our path to profitability.”

CryoCath said in a statement that the sale of the surgical business “marks a significant milestone in our strategy to transition CryoCath into a focused and fast growing electrophysiology cryoablation company,” CryoCath President/CEO, Jan Keltjens, noted that the sale “also advances CryoCath towards the accomplishment of two core goals. First, we now have a clear financial pathway to the U.S. approval and launch of Arctic Front, our flagship product targeting the $2 billion atrial fibrillation opportunity. Secondly, we can focus to achieve rapid, profitable growth in Europe for our EP-Afib business. Due to this increased focus as well as the non-dilutive nature of the financing, we believe this transaction creates great value for our shareholders.”

ATS Medical is a maker of cardiac surgery products including heart valves.

In other dealmaking news:

• Martek Biosciences (Columbia, Maryland) reported that its board has approved the sale of the company’s Fluorescent Detection Products business for $900,000 in cash and a minority interest warrant position. The transaction is expected to close by the end of June.

The buyer, Columbia Biosciences (Columbia, Maryland), is a newly formed company that was founded and is owned by Martek chairman Henry Linsert and six additional Martek employees working in the fluorescent detection area.

Upon closing, Linsert will retire from his current positions as director and chairman of the board of Martek and will no longer be a part-time employee of Martek.

The Martek employees working in the fluorescent detection area will join the new company. Current Martek director Robert Flanagan has been elected to replace Linsert as Chairman of Martek’s board of directors.

Martek said its sales of fluorescent marker products were less than $1 million in each of the last three years, and its senior management determined that the business did not fall within the scope of Martek’s current commercial focus. Beyond its minority interest warrant position, Martek will have no other economic interest, funding or other obligations in or to the new entity, and the new entity will operate entirely independently of Martek.

• Cogdell Spencer (Charlotte, North Carolina) reported that they expect to close on the acquisition of Central New York Medical Center (Syracuse, New York) for about$36.8 million.

The six-story, 111,634 square foot facility is located on the campus of the Crouse Hospital and includes the 469-space parking garage.

Crouse Hospital, a 566-bed not-for-profit hospital, is connected to the facility via an underground tunnel for convenient access. The building is also adjacent to 366-bed SUNY-Upstate Hospital and Syracuse University .

The $36.8 million deal will consist of cash and operating partnership units. No brokers were involved.