• Advanced Cell Technology (ACT; Alameda, California) said it will acquire Mytogen (Charlestown, Massachusetts) and its Myoblast program for the treatment of heart failure. ACT will pay $5 million payable in common stock and assume Mytogen liabilities of about $1 million. Mytogen will also receive a warrant to purchase another 1.5 million shares of ACT common stock at $1 each, subject to achievement of certain milestones.

• ATS Medical (Minneapolis) a maker of cardiac surgery products including heart valves, is acquiring the surgical cryoablation business of CryoCath Technologies (Montreal) for $22 million in cash. The assets being acquired by ATS Medical include the SurgiFrost, FrostByte, and SurgiFrost XL family of products for which ATS currently serves as CryoCath’s exclusive agent in the U.S. and distributor in certain international markets. ATS will pay CryoCath $22 million upon closing of the transaction, $2 million upon achievement of certain manufacturing transition milestones, $2 million two years after closing and up to $4 million in contingent payments based on future sales of Surgifrost XL, an FDA cleared and CE-marked product planned for commercial release in the second half of 2007. The total value of the deal could be closer to $30 million if all these milestones are achieved. CryoCath said it was selling the surgical business to focus on its line of electrophysiology products for treating atrial fibrillation and other abnormal heartbeats.

• An independent consortium led by the Blackstone Group reported that it has initiated its tender offer to acquire all of the outstanding common shares of orthopedic company Biomet (Warsaw, Indiana) for $11.4 billion, or about $46 per share in cash. The buyout group, which also includes affiliates of Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co. and Texas Pacific Group, said it will complete a second-step merger in which any remaining common shares of Biomet will be converted into the right to receive the same per share price paid in the offer. The $46 per share offer price represents a premium of 32.3% over the closing price of Biomet’s common stock on April 3, the trading day prior to public speculation that the company was exploring strategic alternatives. The offer and withdrawal rights will expire at midnight, EST, on July 11, unless the offer is extended. The buyout offer was first disclosed in December.

• Greatbatch (Clarence, New York) said it has completed its acquisition of Enpath Medical (Plymouth, Minnesota). The company first reported its intention to acquire Enpath in May for $102 million in cash plus the assumption of debt. Greatbatch makes critical components used in implantable devices and other technically demanding applications. Enpath makes percutaneous delivery systems and stimulation leads technologies.

• Rapid diagnostics maker Inverness Medical Innovations (IMI; Waltham, Massachusetts) agreed to acquire Cholestech (Hayward, California) in a stock-for-stock exchange deal valued at roughly $326.3 million. IMI will acquire Cholestech’s shares for an exchange ratio of 0.43642 shares of IMI common stock for each share of Cholestech common stock. Cholestech is a provider of diagnostic tools and information for risk assessment and therapeutic monitoring of heart disease and inflammatory disorders.

NxStage Medical (Lawrence, Massachusetts), the manufacturer of the NxStage System One portable kidney dialysis machine, reported that it has agreed to acquire Medisystems (Seattle) and certain of its affiliated units for 6.5 million shares of NxStage common stock. The transaction is valued at about $78.7 million, based on a stock price of $12.11. Medisystems is a private developer of medical devices for use in dialysis and blood-related treatments. It is a U.S. market leader in hemodialysis blood tubing sets, A.V. fistula needles, and other ancillary hemodialysis disposables. The companies have been business partners for seven years, and Medisystems manufactures the cartridge used in the NxStage System One.

• Pioneer Surgical Technology (PST; Marquette, Michigan) reported that it has acquired Encelle (Raleigh, North Carolina), a developer of products for tissue regeneration including E-Matrix, a sterile, injectable biopolymer designed to repair or regenerate diseased or damaged tissue. Terms of the acquisition were not disclosed. Encelle will be a subsidiary of Pioneer, renamed Pioneer Surgical Orthobiologics.

• Stryker (Kalamazoo, Michigan) completed the sale of its outpatient physical therapy business, Physiotherapy Associates, to Water Street Healthcare Partners (Chicago), an equity firm focused on healthcare, for about $150 million in cash. Stryker will retain responsibility for certain cash damages to be paid in connection with a previously disclose investigation of Physiotherapy Associates’ billing and coding practices by the U.S. Department of Justice.