A Medical Device Daily

Greatbatch (Clarence, New York) today reported that it has successfully completed its tender offer for Enpath Medical (Plymouth, Minnesota).

Greatbatch bought a total of 5,839,942 shares in the offering, representing about 90.9% of the outstanding Enpath Medical shares.

The company first reported its intention to acquire Enpath for $102 million in cash plus the assumption of debt back in May (Medical Device Daily, May 1, 2007),

Greatbatch said it expects to close the merger with Enpath Medical on Friday. As a result of the merger, all remaining outstanding Enpath Medical shares will be cancelled and converted into the right to receive the price paid in the tender offer of $14.38 a share, in cash, without interest and less any required withholding taxes. A letter of transmittal to be used for surrendering share certificates for payment of the merger price will be sent to shareholders who did not tender their shares in the offer, the company said. After completion of the merger, Enpath Medical will be an indirect wholly owned subsidiary of Greatbatch.

Greatbatch makes critical components used in implantable medical devices and other technically demanding applications.

Enpath Medical makes percutaneous delivery systems and stimulation leads technologies. Its products include venous vessel introducers, articulating and fixed curve delivery catheters, epicardial and endocardial stimulation leads, and other products for use in pacemaker, defibrillator, catheter and infusion port procedures as well as neuromodulation markets.

In other dealmaking news:

• CombinatoRx (Cambridge, Massachusetts) and Angiotech Pharmaceuticals (Vancouver, British Columbia) reported an early extension of their collaboration based upon the successful advancement of a number of product candidates in relevant preclinical models. The joint research being conducted under the agreement to create next generation drug device and local medicines has been extended beyond the initial two and a half year term to a total of five years, resulting in a $7 million payment to CombinatoRx due before October 3.

In October 2005, CombinatoRx and Angiotech entered into a research and license agreement which granted Angiotech an option to evaluate and exclusively license compounds selected by Angiotech from the CombinatoRx clinical and preclinical pipeline and its bioinformatics database of synergistic combination pharmaceuticals for development and potential commercialization in certain medical device and local interventional applications. CombinatoRx also agreed to deploy its combination high throughput screening technology in a joint multi-year research initiative to identify novel drug combinations for multiple areas of strategic importance to Angiotech.

Intellectual property from this research project will be jointly owned, and exclusively cross-licensed to CombinatoRx for traditional pharmaceutical uses outside the Angiotech fields of use. Angiotech has made an upfront license execution payment of $27 million to CombinatoRx plus a $15 million equity investment in CombinatoRx, entitling Angiotech to license up to ten CombinatoRx compounds for the Angiotech field, and up to five more compounds for an additional payment of $2 million per compound.

Intellectual property from the research project component of the agreement is exclusively licensed to Angiotech in the Angiotech fields of use. CombinatoRx is eligible to receive development and regulatory milestone payments of up to $30 million for each product selected by Angiotech for development, in addition to royalties on cumulative commercial sales of such products.

CombinatoRx says it is pioneering the new field of synergistic combination pharmaceuticals and has a broad product portfolio in Phase II clinical development.

Angiotech Pharmaceuticals is a global specialty pharmaceutical and medical device company. Angiotech develops treatment solutions for diseases or complications associated with medical device implants, surgical interventions and acute injury.

• Prospect Medical Holdings (Culver City, California) said it is in substantive discussions to acquire a private, for-profit hospital management company that owns and operates several community-based hospitals in Southern California.

The acquisition is subject to, among other things, the signing of a definitive agreement, finalizing the financing for the transaction, obtaining regulatory and other consents, and other customary closing conditions.

Prospect manages the medical care of individuals enrolled in HMO plans in Southern California.

• Southern Home Medical Equipment (Spartanburg, South Carolina) reported that it has completed the acquisition of the Oakdale, Louisiana, branch of Evangeline Medical and Nursing Supply , a medical equipment company that finished 2006 with revenue of more than $300,000. Southern Home Medical’s three new locations cover a 200-mile service area in South Central Louisiana.

Southern Home Medical recently completed the acquisition of the Lafayette and Ville Platte, Louisiana, branches of Evangeline Medical and Nursing Supply (Medical Device Daily, June 7, 2007).

Southern Home Medical is a holding company with a focus on medical equipment operations in the Southeastern U.S.