A Medical Device Daily
Kensey Nash (Exton, Pennsylvania) reported acquiring substantially all of the assets of the MacroPore Biosurgery spinal and orthopedic business of Cytori Therapeutics (San Diego) — primarily MacroPore’s HYDROSORB surgical implant product line — for $3.2 million cash.
The line of spine and orthopedic implants will be manufactured by Kensey Nash and will be distributed by Medtronic (Minneapolis), continuing an agreement it had with MacroPore.
Since 1996, MacroPore Biosurgery has developed bioresorbable products targeting spinal, craniofacial, and orthopedic applications. The assets acquired encompass the manufacturing of six bioresorbable product lines. As part of the transaction, Kensey Nash received related manufacturing equipment and proprietary know-how as well as ownership of regulatory filings.
Kensey Nash said that the acquired assets are complementary to its own manufacturing capabilities. These include a bioresorbable graft containment system and other spinal and orthopedic devices.
The company said that “after a short transition period,” it will manufacture the products at its Exton facility.
“This transaction represents a unique opportunity for us to expand our biomaterials business by leveraging our bioresorbable manufacturing expertise,” said Joseph Kaufmann, president/CEO of Kensey Nash. “The addition of new product lines through our new manufacturing facility will be beneficial to the company.”
Christopher Calhoun, CEO for Cytori, said the planned divestiture “strategically increases Cytori’s focus on the development and commercialization of adipose-derived regenerative cell therapies” and “will have a favorable financial impact through reduction in operating expenses and net operating loss. In addition, it represents our third non-core asset sale and brings non-dilutive cash to enable further investment into the tremendous opportunity of regenerative medicine.”
Kensey Nash provides products for multiple markets, primarily in the endovascular, sports medicine and spine markets.
Cytori is seeking to commercialize stem and regenerative cell therapies for cardiovascular disease, reconstructive surgery and other chronic conditions.
In other dealmaking activity:
• HealthSouth (Birmingham, Alabama) on Friday reported that it will sell its corporate campus in Birmingham.
The campus consists of a 200,000 square-foot headquarters building, the 85-acre corporate campus on which the headquarters sits, and a contiguous 19-acre tract of land that includes an incomplete 13-story building formerly called the “Digital Hospital.” The transaction is under contract with an investment fund, sponsored by Trammell Crow Company, for a purchase price of at least $60 million and is expected to close by the end of July.
HealthSouth said that execution of this agreement is another step in its plan, unveiled last August, to deleverage the company and reposition it for growth as a “pure play” post-acute care provider with a focus on inpatient rehabilitation.
It said that proceeds from the transaction will be used to pay down a portion of the company’s long-term debt.
“We have always believed there was a lot of value in this property,” said Jay Grinney, president/CEO of HealthSouth. “But, we also knew this building was too big for a company of our size and required more resources than a healthcare company should be spending on its corporate headquarters.”
HealthSouth will continue to lease space in the existing headquarters building for at least one year, then either remain in the current building or re-locate to other space in the Birmingham area.
“We have engaged Carruthers Real Estate Company to assist us in evaluating our relocation alternatives and hope to find something in close proximity to our existing space,” said Grinney. “This community has been very good to HealthSouth. We call this home and intend to continue to support this great city in the years to come.”
• eXegenics (d.b.a. Opko Health ; Miami, Florida) has agreed to acquire Ophthalmic Technologies (OTI; Toronto), a private company providing eye care imaging systems.
Opko purchased one-third of the common shares of the company and received an exclusive option to purchase the remaining shares over a period of about six months. The specific value of the deal was not disclosed.
Additionally, Opko has hired Steven Verdooner as executive VP of instrumentation, a new position.
Dr. Philip Frost, CEO and chairman of Opko, cited “powerful synergies between our therapeutics pipeline and the diagnostic systems and devices used by eye care professionals, and we believe OTI will be a good strategic foundation for that business.” He said that Verdooner’s experience in ophthalmic diagnostic instrumentation “will be very valuable as we build our presence in this sector.”
OTI provides ophthalmic ultrasound and imaging products used by eye care professionals for both routine and specialized care. The company’s SLO/OCT system provides a flexible platform that can process a variety of diagnostic tests. OTI has offices in Canada, the U.S. and the U.K. and a distributor network that currently covers more than 40 countries.
Steven Verdooner joins Opko from Ophthalmic Imaging Systems (OIS), which he co-founded in 1984. In his more than 20 years at OIS, Verdooner had responsibility for a variety of areas, serving as executive VP, president, CEO and chairman.
Opko was recently reconstituted as a specialty healthcare company through a three-way merger with private companies Acuity Pharmaceuticals and Froptix . Its product portfolio includes the gene silencing agent bevasiranib; a clinical stage product for conjunctivitis; and a pipeline of preclinical candidates.
• IASIS Healthcare (Franklin, Tennessee) reported completing the previously announced purchase of Alliance Hospital (Odessa, Texas) from Alliance Hospital, Ltd . for $65.5 million in cash, units of limited partnership interest of Odessa Regional Hospital , a subsidiary of IASIS, and the assumption of certain liabilities of Alliance.
Alliance is located adjacent to Odessa Regional, owned and operated by Odessa Regional. IASIS said it plans to consolidate the operations of these two acute-care facilities to provide the Odessa, Midland and surrounding areas with a range of patient care in one location.
IASIS is an owner/operator of medium-sized acute care hospitals in high-growth urban and suburban markets.
• LHC Group (LaFayette, Louisiana), a provider of post-acute healthcare services, said it has formed an agreement with Thomas Hospital to create a partnership relating to the home health services in Fairhope, Alabama. LHC will acquire a controlling interest in the assets of Thomas and will oversee day-to-day operations. Financial terms were not disclosed.
This agency will begin service immediate and will operate as Thomas Home Health .
LHC provides home-based services through its home nursing agencies and hospices and facility-based services through its acute care hospitals and rehabilitation facilities.
• Cytyc (Marlborough, Massachusetts) reported that, as a result of its pending merger with Hologic (Bedford, Massaschusetts) and anticipation of a meeting of stockholders relating to the merger, the annual meeting scheduled for July 24 has been postponed.
Cytyc said it will report the time and place of the special meeting at a later time, with the meeting held only in the event that the merger is not approved or otherwise does not occur, in which case a new date for the annual meeting will be announced.
• Shady Grove Fertility Reproductive Science Center (Rockville, Maryland) reported purchasing the Greater Baltimore Medical Center Fertility Center (Baltimore), which will be renamed Shady Grove Fertility at GBMC . Deal terms were not disclosed.
In operation since 1984, GBMC Fertility Center is the leading fertility center serving the Baltimore area.
GBMC includes Greater Baltimore Medical Center (GBMC), Central Maryland’s leading community hospital; Hospice of Baltimore, which provides comfort and care to patients with life-limiting illnesses; and the GBMC Foundation, which supports the GBMC mission by managing fundraising efforts.