A Medical Device Daily
Medical laser manufacturerLaserscope (San Jose, California) reported acquiring InnovaQuartz (IQ; Phoenix). Laserscope acquired all of the capital stock of InnovaQuartz for about $7.5 million in cash, the assumption of about $1.1 million in debt and future milestone payments, contingent on the financial performance of IQ over about three years.
Founded in 1991, IQ manufactures medical devices for multiple medical procedures, including those used in the treatment of kidney, bladder and other urinary stones. InnovaQuartz's medical devices include fiber optics, sterile fiber optic delivery devices, optical components and optical subassemblies.
IQ will be managed and operated as a wholly owned subsidiary of Laserscope “for the foreseeable future,” Laserscope said.
Eric Reuter, president and CEO of Laserscope, said, “The acquisition of IQ is exciting for Laserscope for three important strategic reasons.” These are: the addition of IQ's newest fiber optic product line, giving Laserscope entry into “another important urological market” – the intracorporeal treatment of kidney, bladder, and other urinary stones that use holmium laser technology; secondly, the “swift realization of savings in fiber materials costs for our main fiber optic product line, the GreenLight PV delivery device;” and, thirdly, “IQ's R&D expertise and focus in specialty assemblies and components and rapid proto-typing.” He said this later will support Laserscope's existing R&D efforts to develop new fiber optic medical devices.
The acquisition is expected to be accretive beginning in 2007, according to LaserScope.
IQ manufactures advanced medical fiber optics and recently acquired proprietary intellectual property and manufacturing expertise, which it uses to produce a line of advanced sterile fiber optic delivery devices available for use in intracorporeal laser lithotripsy, or the endoscopic treatment of kidney, bladder, and other urinary stones using holmium laser technology.
Laserscope said that according to industry sources, the total market size for holmium laser capital equipment and disposable and reusable delivery devices for these procedures exceeds $50 million per year in the U.S.
Laserscope said it will hold an Investor Relations Forum coinciding with the 2006 meeting of the American Urological Association (Linthicum, Maryland) May 22 in Atlanta. At this meeting, Laserscope said it will be discussing current and future R&D and business development initiatives for our urology and aesthetic product lines as well as unveiling the latest new additions to its urology product line.
In other dealmaking activity:
• LifePoint Hospitals (Brentwood, Tennessee) reported completing the previously announced sale of 96-bed Medical Center of Southern Indiana (Charlestown, Indiana), to Saint Catherine Healthcare , and 123-bed Ashland Regional Medical Center (Ashland, Pennsylvania), to Saint Catherine Healthcare of Pennsylvania . The facilities, which were acquired in the Province merger, have been reflected as discontinued operations since the second quarter of 2005.
• Health Management Associates (HMA; Naples, Florida) reported acquiring the former Cleveland Clinic hospital and clinic located in Naples, Florida. The hospital has been renamed Physicians Regional Medical Center , and is a fully accredited, general acute-care hospital operating 83 licensed beds.
As previously reported, Physicians Regional said it expects to develop and maintain a long-term clinical affiliation with the Cleveland Clinic.
HMA owns and operates general acute care hospitals in non-urban communities located throughout the United States. Upon completion of the previously announced transaction to acquire the 189-bed Gulf Coast Medical Center, HMA will operate 62 hospitals in 16 states with around 8,817 licensed beds.