A Medical Device Daily
Hemagen Diagnostics (Columbia, Maryland), a maker of diagnostic test kits, reported the sale of a manufacturing building for $1.8 million. It said it purchased the facility in June of last year for $800,000. With the sale, the company said it would record a gain in 4Q06.
The company said that the building was originally purchased to house its headquarters, to combine certain manufacturing processes and to provide space for expansion and acquisition.
William Hales, president and CEO, said, “[W]e expect to be able to achieve our operational goals in our current leased space. In recording this transaction, we eliminated approximately $665,000 in short-term liabilities related to the construction financing and recorded approximately $1 million dollars in additional cash to the balance sheet.”
Hemagen has three different product lines: the Virgo product line of kits used to diagnose certain autoimmune and infectious diseases, using ELISA, Immunofluorescence and hemagglutination technology; clinical chemistry reagents under the brand name Raichem and various OEM arrangements; and clinical chemistry analyzers.
MD-IT (Dallas), a provider of medical documentation services, said that it has completed its purchase of Texas-based Trans Med Plus , which provides transcription services to physician practices. MD-IT will acquire the outstanding stock of Trans Med Plus and the former owners will join the management team of MD IT. Deal value was not disclosed.
MD-IT offers what it calls Intelligent Transcription services and products to more than 1,100 physicians in 170 group practices. Intelligent Transcription, it says, provides automated tools for document creation and exchange among physician offices, medical transcriptionists and information systems.
In other dealmaking news:
• Pediatrix Medical Group (Fort Lauderdale, Florida) reported acquiring Pediatric Cardiology Associates (Orlando, Florida), a practice providing cardiology services to infants and children with congenital and acquired heart disease. Pediatrix paid an undisclosed amount of cash and said the transaction will be immediately accretive.
Janusz Burzynski, MD, will serve as Pediatrix's medical director for the practice.
Pediatrix also reported acquiring a neonatal physician group practice in Lancaster, California. Pediatrix paid cash for the practice – the amount undisclosed – and said the transaction is expected to be immediately accretive.
The physician group provides neonatal services at the neonatal intensive care unit (NICU) of Antelope Valley Hospital (Lancaster), with patient volume of more than 7,000 NICU patient days and more than 5,000 newborn nursery patient days annually.
Pediatrix is a provider of newborn, maternal-fetal and pediatric physician subspecialty services.
• IRIS International (Chatsworth, California), a maker of automated IVD urinalysis systems, said it has prepared its allocation of the purchase price paid to acquire Leucadia Technologies (Carlsbad, California). The deal, disclosed in early April, is for Iris to acquire Leucadia for $10.1 million (Medical Device Daily, April 6, 2006).
The company established the following allocation: cash, $2,000; fixed assets, $21,000; core technology, $1.79 million; goodwill, about $2.23 million; total assets, somewhat more than $4 million; and in-process R&D expense, $5.18 million.
IRIS said the core technology intangible asset amount reflects the valuation of the two technology platforms acquired in the Leucadia buy – Nucleic Acid Detection Immuno Assay, a diagnostic method more sensitive than current immunoassay technology, it said; and a separation and concentration technology which develops albumin micro-bubbles coated with antibodies that attach and float specific cell types.