A Medical Device Daily

Langer (Deer Park, New York) reported the closing of the acquisition of substantially all the assets of Regal Medical Supply (Granbury, Texas) through Langer’s wholly-owned subsidiary Regal Acquisition. The purchase price was about $1.64 million, including the satisfaction of certain obligations to affiliated parties in exchange for the delivery of excess working capital. The proposed purchase was disclosed last month (Medical Device Daily, Dec. 18, 2006).

The transaction was funded by the issuance of 379,167 shares of Langer common stock at a price of $4.3290 a share.

For the nine-month period ended Sept. 30, 2006, Regal generated net sales of about $1.74 million.

Regal is an accredited supplier of contracture management products and services focused on the long term care market with 24 sales representatives covering both chain and independently operated skilled nursing and assisted living facilities in 22 states.

Regal President John Shero executed a three-year employment contract and joined a subsidiary of the company as its VP of field sales.

Langer, together with its wholly owned subsidiary Silipos, makes orthopedic, orthotic and prosthetic products.

In other dealmaking activity:

• Linc Facility Services (LFS; Houston) and its family of companies reported acquiring Technology in Medicine (TiM; Holliston, Massachusetts), a provider of medical equipment maintenance management services. Terms were not disclosed.

TiM provides clinical engineering and technology management services to hospitals, healthcare systems and alternative care facilities in the New England and Mid-Atlantic regions.

“As one of the largest independent medical equipment services firms, the TiM acquisition will provide us with critical mass and instant credibility in the high-tech healthcare market,” said Phil Rogers, LFS president/CEO. “The Northeast houses one of the largest hospital populations in the country.”

TiM will retain its name but be branded as A Linc Facility Services Company and will become part of the LFS commercial division. Raymond Zambuto, founder and president of TiM, will join the LFS executive team and continue as president of TiM.

“LFS presents TiM with an exciting opportunity to extend the reach of our programs and apply resources that further enhance our value to our customers,” said Zambuto. “Both organizations have a demonstrated commitment to customer satisfaction, innovation, technology, and ‘unparalleled excellence.’”

LFS is a business-to-business productivity partner billing itself a leader in technology and high-value facility services.

• Cynosure (Westford, Massachusetts) reported that American Laser Centers (ALC; Farmington Hills, Michigan), a provider of laser hair removal, skin rejuvenation and cellulite reduction therapy, has selected Cynosure’s Affirm aesthetic workstation to provide fractional anti-aging technology. The amount of workstations to be purchased was not detailed.

Affirm is a single-platform, multi-energy technology designed for anti-aging applications, including skin rejuvenation and treatments for wrinkles, skin texture and discoloration and features Cynosure’s Combined Apex Pulse (CAP) technology, a disposable microlens array for reducing the appearance of wrinkles and scars with micro-rejuvenation capabilities to create a more complete skin treatment.

ALC provides laser hair removal, skin rejuvenation, and cellulite reduction therapy and says it offers the industry’s only two-year guarantee for laser hair removal.

• National Quality Care (NQCI; Beverly Hills, California) reported that, as a result of what it called Xcorporeal’s (Los Angeles) breaches of contract and wrongful conduct, it terminated all transactions and agreements between them, including a merger agreement and a license agreement, each dated Sept. 1.

NQCI signed an exclusive license agreement with Xcorporeal on Sept. 1, 2006, under which Xcorporeal has continued the development of the underlying technology. NQC separately entered into a merger with Xcorporeal on Sept. 1, 2006, subject to due diligence.

Xcorporeal alleged that NQC’s CEO led negotiations with Xcorporeal and made representations ultimately found to be false. It also charged that NQCI failed to engage qualified financial and regulatory officers, failed to adopt a quality system procedure that met FDA standards, and failed to adopt required financial disclosure controls. It said NQC had numerous problems with its business operations and failed to report its real financial condition (Medical Device Daily, Jan. 10, 2007).

“In response to NQCI’s assertion of its rights, Xcorporeal has made a number of meritless allegations, which it has repeated in a press release dated [Tuesday] that it filed with the SEC pursuant to a Current Report on Form 8-K of the same date,” said Robert Snukal, NQCI’s CEO. “Xcorporeal’s press release is riddled with too many deliberate mischaracterizations and outright falsehoods to warrant a point-by-point refutation.” Moreover, NQCI notes that the matters referenced in Xcorporeal’s press release are pending before the Los Angeles Superior Court and before an arbitrator in Santa Monica, California.

“NQCI believes that there is no reason to debate the issues via press release, and regards Xcorporeal’s attempt to do, by means of a series of false and misleading statements made in an inappropriate forum, as a continuation of its pattern of wrongful conduct,” Snukal said.

NQCI said it would continue to focus on the development of its wearable artificial kidney, which could be worn as a belt and is designed to operate 24/7.