A Medical Device Daily

Cardinal Health (Dublin, Ohio), a provider of products and services supporting the healthcare industry, reported that it has completed the $3.3 billion sale of its Pharmaceutical Technologies and Services (PTS) unit to the Blackstone Group.

The deal, first disclosed in January (Medical Device Daily, Jan. 26, 2007), was designed to allow Cardinal to focus resources on its four remaining segments serving healthcare provider customers.

PTS is a provider of advanced technologies and outsourced services for the pharmaceutical, biotechnology and consumer health industry. It develops pharmaceutical and other products for customers in nearly 100 countries, employs about 10,000 at more than 30 facilities worldwide and generates more than $1.7 billion in annual revenue.

Among its core offerings, PTS develops oral and sterile pharmaceuticals in nearly all major dosage forms, and it offers technologies used in many well-known prescriptions and over-the-counter products. PTS is also the largest contract packager of pharmaceuticals.

Greatbatch (Clarence, New York) reported that it has completed the $11.4 million acquisition of substantially all of the assets of Biomec (Cleveland) that was first disclosed last month (MDD, March 21, 2007).

The transaction, which was comprised of cash and future additional considerations, closed on April 3, following approval by Biomec shareholders.

Biomec was established in 1998 with the goal of accelerating promising technology from major medical and academic institutions, national laboratories, and internal developments to successful commercial products.

It reports that it is developing a polymer coating (biomimetic) that mimics the surface of endothelial cells of blood vessels with potential use on several medical devices, including in-dwelling central venous catheters, cardiac pacing leads, and extra-corporeal blood pump circuits in bypass surgery.

Greatbatch said it will maintain Biomec's operations in Cleveland, which includes a 25,000 square foot facility providing engineering, prototype manufacturing, and machining capabilities. The facility is FDA-registered and maintains a quality system certified to ISO 13485 standards.

"With the acquisition of Biomec, we can now offer our customers more robust device engineering expertise along with full device assembly utilizing our proprietary component," said Mauricio Arellano, senior VP of Medical Solutions for Greatbatch. "This will enable us to work in conjunction with our customer's design teams to build more sophisticated devices."

Greatbatch is a developer of critical components used in implantable medical devices and other technically demanding applications.

In other dealmaking news:

• Uroplasty (Minneapolis) reported that it has closed on the previously reported agreement to purchase from CystoMedix (Andover, Massachusetts) certain intellectual property assets related to its Urgent PC neuromodulation system (MDD, March 19, 2007). The agreement also provided for the termination of the April 2005 exclusive manufacturing and distribution agreement with that company.

In consideration, Uroplasty issued CystoMedix 1,417,144 shares of Uroplasty common stock. With the issuance of the shares to CystoMedix, Uroplasty will have 13 million common shares outstanding.

Uroplasty develops products for the treatment of voiding dysfunctions.

• Synovis Life Technologies (St. Paul, Minnesota) reported the completion of its acquisition of the 4Closure Surgical Fascia Closure System from privately-held Fascia Closure Systems (Santa Ana, California).

The 4Closure system is a device and operating method for closure of punctures in the fascia, a layer of connective tissue on the inner surface of the chest or abdominal wall, following laparoscopic procedures which use larger diameter operating ports or trocars. The device is authorized for sale in the U.S. and has a patent pending.

"With this acquisition, our direct sales force has a new product to sell and another entry point to bariatric and general surgeons, as well as other surgical specialists who utilize laparoscopic techniques," said Richard Kramp, president/CEO of Synovis Life Technologies.

Synovis Life Technologies develops medical devices for the surgical and interventional treatment of disease.

• Medwave (Arden Hills, Minnesota) reported that its board of directors has decided to begin a process to explore strategic alternatives to enhance shareholder value, including but not limited to the raising of capital through the sale of securities or assets of the company, a recapitalization, strategic acquisitions, and the combination, sale or merger of the company with another entity.

Medwave is engaged in the development of noninvasive, blood pressure measurement and monitoring systems.

• Delcath Systems (Stamford, Connecticut) reported that it has entered into a modification agreement with Laddcap Value Partners, Laddcap Associates, and Laddcap Value Associates to amend the Oct. 8, 2006 settlement agreement between Delcath and Laddcap (MDD, Oct. 11, 2006). The key terms of the modification agreement will allow Laddcap to increase its position in Delcath, if it so chooses, through open market purchases of Delcath shares beyond the previous 14.9% limitation established by original settlement agreement to just under 20%. Additionally, Delcath will no longer be required to elect two directors nominated by Laddcap or to appoint at least one Laddcap nominee to each of its committees as stipulated in the original agreement. The board of Delcath also voted unanimously to increase the threshold level for triggering the shareholder rights plan from 15% to 20%, effective immediately.

Delcath Systems is a developer of percutaneous perfusion technology for organ or region-specific delivery of therapeutic and chemotherapeutic agents.