Advanced Cell Technology (ACT; Alameda, California) has agreed to 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. The Myoblast program involves transplantation of expanded autologous Myoblasts derived from a small biopsy of skeletal muscle from a patient’s leg. Mytogen technology allows expansion of Myoblasts into hundreds of millions of cells over a period of two to three weeks, with the resulting Myoblasts transplanted back into the patient’s scarred heart tissue with a catheter-based procedure. With the acquisition, ACT said it will transition from a development-stage to a clinical-stage company. ACT is applying embryonic stem cell technology in the field of regenerative medicine. Mytogen develops autologous myoblast transplantation designed to restore cardiac function.

ATS Medical (Minneapolis) a maker of cardiac surgery products, is acquiring the surgical cryoablation business of CryoCath Technologies (Montreal), including 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, $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 2H07. Surgifrost XL enables a minimally-invasive beating heart solution for the treatment of cardiac arrhythmias, including atrial fibrillation without concomitant cardiac surgery. In 2004, CryoCath and ATS entered into agreements under which ATS served as the exclusive representative of CryoCath for sales of its surgical cryoablation products in the U.S. and exclusive distributor in specified European markets. CryoCath has developed a portfolio of products, marketed under the SurgiFrost and FrostByte trade names, used to treat cardiac arrhythmias.

Corautus Genetics (Atlanta) reported that its stockholders approved the previously disclosed merger with VIA Pharmaceuticals (San Francisco), a biotechnology company focused on the development of compounds for the treatment of cardiovascular disease. Following the special meeting of stockholders, the Corautus board also approved a reverse stock split of the Corautus common stock at a ratio of 1:15.

Flextronics International (Singapore) reported that it will buy rival contract electronics manufacturer Solectron (Milpitas, California) for about $3.6 billion in cash and stock. The companies said that, combined, they will have the broadest worldwide electronics manufacturing services capabilities, from design resources to end-to-end vertically integrated global supply chain services. Flextronics provides design and electronics manufacturing services to OEMs of a range of industries including the medical device markets. Solectron provides electronics manufacturing and supply chain management services to OEMs in the electronics products and technology market, including in medical products, such as X-ray equipment, ultrasound fetal monitors, MRI scanners, blood analyzers, insulin delivery devices, ECG patient monitors, surgical robotic systems and spectrometers. The companies said that this merger between the biggest U.S. companies in the contract electronics industry would create a company with more than $30 billion in annual revenue and a workforce of about 200,000. Solectron will become a subsidiary of Flextronics, with Solectron shareholders owning 20% to 26% of Flextronics’s shares. Flextronics said that the deal is projected to close by the end of this year.

Greatbatch (Clarence, New York) completed its acquisition of Enpath Medical (Plymouth, Minnesota) in May for $102 million in cash, plus assumption of debt. Greatbatch’s acquisition of Enpath was structured as a cash tender offer for the outstanding shares of the company, followed by the merger of a Greatbatch acquisition subsidiary with and into Enpath, resulting in that company becoming a wholly owned, indirect subsidiary of Greatbatch. Greatbatch makes critical components used in implantable devices and other technically demanding applications. Enpath makes percutaneous delivery systems and stimulation leads technologies.

MedCath (Charlotte, North Carolina) reported that its MedCath Partners Division, formerly known as MedCath Diagnostics, has entered into a new relationship with cardiologists and a regional medical center. New Hanover Regional Medical Center (Wilmington, North Carolina), a 769-bed tertiary hospital, will become an owner in a joint venture previously formed by MedCath Partners and local physicians. MedCath owns interests in and operates 11 hospitals in eight states. MedCath and its subsidiary, MedCath Partners, manage the cardiovascular program at various hospitals and provide services in diagnostic and therapeutic facilities in various states.