A Medical Device Daily
Andover Medical (AMI; North Andover, Massachusetts) said it has entered into a letter of intent with Ortho-Medical Products (New York), to acquire all of its outstanding stock, for an undisclosed sum.
Andover said that the acquisition will represent the first consolidation for it in the orthopedic durable medical goods space and furthers the company’s objective of rolling up smaller businesses to gain efficiencies and increase profit margins.
AMI also said the deal will give it important product lines and new distribution channels and intended to serve “as the springboard for further growth in the orthopedic medical area.” The company said another goal of the acquisition is to consolidate ordering, inventory and reimbursement billing, and it expects to extract inefficiencies out of the consolidation.
Ortho-Medical specializes in procedure-specific orthopedic durable medical equipment, respiratory equipment and orthotics and prosthetics. It services the five boroughs of New York City, Nassau, Suffolk and Westchester Counties, Northern New Jersey, Upper New York State and the State of Connecticut. The company’s objective is to make this network available to case managers, preferred provider organizations and health maintenance organizations.
“This acquisition is expected to position Ortho-Medical Products for continued strong growth and enable it to be part of this needed industry consolidation which will result in better customer service and higher operating margins,” said Marc Waldman, executive VP of business development for Ortho-Medical. “Once this deal closes, I plan on intensifying my efforts to find other strategic acquisitions for AMI,” he added.
AMI is building a single source provider of orthopedic, podiatric and urological durable medical equipment and incontinence treatment solutions. The company said it intends to establish a nationwide subsidiary network and plans to offer physicians the largest selection of competitively priced brand-name durable medical equipment, and urodynamic diagnostic and treatment products.
Parexel International (Boston), a bio/pharmaceutical services organization, reported that it has executed an agreement to acquire the business and operations of California Clinical Trials Medical Group (CCT) and Behavioral and Medical Research LLC (BMR; both San Diego).
The purchase price is $65 million, and the acquisition is expected to close within the next 30 days.
Established in 1981, CCT and BMR provide a range of specialty Phase I-IV clinical research services through four clinical sites in California.
“The acquisition will further strengthen our global Clinical Pharmacology Network with the addition of 51 Phase I beds on the West Coast,” said Josef von Rickenbach, chairman and CEO of Parexel. “A 35-bed unit located on the campus of the Glendale Adventist Medical Center combined with an additional 16 beds that are currently under construction at another location, will expand Parexel’s Clinical Pharmacology capacity to over 400 beds, making Parexel one of the largest providers of Phase I services in the world.
Parexel bills itself as one of the largest biopharmaceutical outsourcing organizations in the world, providing a range of contract research, medical marketing and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries.