A Medical Device Daily
Orthovita (Malvern, Pennsylvania), a spine and orthopedic biosurgery company, reported that it has entered into a royalty sale agreement with Angiotech Pharmaceuticals (Vancouver, British Columbia), in which Orthovita will purchase the profit-sharing royalty rights for its Vitagel surgical hemostat and Cellpaker collection device products under its license agreement with Angiotech.
Orthovita will pay $9 million in cash to Angiotech, and the license agreement will be amended and restated to eliminate Orthovita's obligations to make royalty payments on Vitagel and Cellpaker sales and meet minimum sales requirements, extend the term of the license agreement from Dec. 31, 2014 through July 2017 (which covers the life of the licensed Vitagel and Cellpaker patent portfolio), and eliminate certain termination rights in favor of Angiotech.
The closing of the royalty purchase transaction is scheduled for Dec. 29, subject to the satisfaction of certain closing conditions.
Antony Koblish, president/CEO, said, “The profit-sharing royalty buyout gives us the potential to increase gross margins on one of our fastest growing products. We plan to further maximize long-term financial benefits from Vitagel sales by improving manufacturing efficiencies for the product.“
In other dealmaking news:
LifeGas (Cleveland), a division of Linde Gas , reported its Dec. 1 acquisition of the business assets of medical gases distributor Ohio Dental & Medical (Stafford, Texas).
“We exclusively focus on the medical market,“ said LifeGas President Mike Walsh. “Adding the Ohio Dental medical gas distribution assets to the LifeGas product and services portfolio will help us continue to cater to the growing healthcare industry in Southeast Texas.“ LifeGas currently operates a medical gas facility in Houston.
Ohio Dental & Medical is a medical gas distributor offering a line of medical gases and related equipment.
Precyse Solutions (Wayne, Pennsylvania), which focuses on outsourced health information management (HIM) services and technologies, reported that it has completed the acquisition of the Health Information Services Division of Certus (Irvine, California). Precyse Solutions' said the acquisition secures its position as “one of the largest outsourced HIM providers in the country.“
The Certus HIM division has 160 employees and accounts in a variety of healthcare organizations throughout the U.S., the largest of which is the UCLA Medical Center (Los Angeles).