A Medical Device Daily

Stryker (Kalamazoo, Michigan) said it is has acquired all of the outstanding stock of Sightline Technologies (Haifa, Israel), a privately held, development-stage company. Transaction terms include an up-front payment of $50 million in cash, plus assumption of certain liabilities.

Stryker said it also agreed to make milestone payments of up to another $90 million upon achievement of certain operational and financial milestones related to Sightline's products, the first of which is not expected to occur before 2007.

Sightline, a developer of flexible endoscopes for gastrointestinal (GI) and other markets, said it has developed a technology “that should improve insertion and sterilization during colonoscopy procedures.“

Stryker said the transaction would result in an estimated 1Q06 after-tax charge of about $53 million, or 13 cents per diluted share, reflecting in-process R&D costs.

Excluding the write-off of in-process R&D costs, Stryker reaffirmed its adjusted diluted net earnings per share guidance of $2.02 for the year ended Dec. 31, 2006, despite anticipated additional spending to further develop the Sightline products in 2006.

“Stryker is a leader in the rigid endoscopy market. This acquisition allows us to apply our core competencies in visualization technology and sales and marketing to the flexible endoscopy market,“ said Bill Enquist, president of Stryker Global Endoscopy. “Additionally, Sightline will potentially open up new markets for our Communications and Video Accessories businesses.“

SunTech Medical Group said it has acquired Oakfield Instruments (both Eynsham, UK), a company that manufactures gastrointestinal pressure, pH monitoring equipment and urology products.

Oakfield, which markets its products under the Flexilog brand name, will continue to be run by its existing management team following the acquisition.

Currently a leader in motion-tolerant, noninvasive blood pressure monitoring products and technology, SunTech Medical said it now would have a presence in two new medical diagnostic markets.

“The acquisition is the next step in our plans to develop and grow SunTech Medical into a focused medical diagnostics business,“ said Chairman John Laurie.

In other dealmaking news:

• Ranbaxy Pharmaceuticals (Jacksonville, Florida) said it has purchased the patents, trademarks and automated manufacturing equipment relating to Senetek 's (Napa, California) disposable autoinjector for self-administration of parenteral drugs, including epinephrine for emergency treatment of anaphylactic shock from peanut and other allergies.

The agreement provides for a non-refundable payment by Ranbaxy to Senetek on signing – the amount undisclosed – and milestones based on regulatory approvals and cumulative sales milestones. Terms also include a percentage of Ranbaxy's and/or its licensees' quarterly net sales of the products to be paid to Senetek.

Initially, Ranbaxy will focus on pre-filling the autoinjector device with epinephrine. Ranbaxy said it also would evaluate the development of other parenteral drugs (including Senetek's patented erectile dysfunction drug, Invicorp).

Ranbaxy said it would make infrastructure investments, including building the required clean room suites at its facility in New Brunswick, New Jersey, to house the highly automated autoinjector production line. The company also will obtain regulatory approvals and market the product.

Senetek is a life sciences development and licensing company focused on dermatological and skin care products addressing photo-damage and age-related skin conditions.

• Microtek Medical Holdings (Alpharetta, Georgia), a manufacturer of infection control products, fluid control products and safety products to healthcare professionals, has acquired Samco (Malta), a manufacturer of disposable surgical products. Financial terms were not disclosed.

The company said it expects Samco to add about $3.3 million to its annualized revenues.

• AmerisourceBergen (AB; Valley Forge, Pennsylvania) reported its wholly owned subsidiary, AmerisourceBergen Canada , has completed the purchase of substantially all of the assets of privately held Asenda Pharmaceutical Supplies (Richmond, British Columbia), and a related entity, for about $18 million.

AB is one of the world's largest pharmaceutical services companies serving the U.S., Canada and selected global markets. It said the Asenda acquisition would be neutral to its FY06 earnings.

• Community Health Systems (CHS; Brentwood, Tennessee) reported that Highland Medical Center (Lubbock, Texas), a 123-bed hospital, has been sold to Shiloh Health Services (Louisville, Kentucky).

The transaction was effective on March 18 and was structured as a sale of equity interests.

Through its subsidiaries, CHS owns, leases or operates 71 hospitals in 21 states.

• Celtic Healthcare (Mars, Pennsylvania), a regional home healthcare and rehabilitation services provider, reported acquiring the Carlisle Regional Medical Center Home Health Care Division (Carlisle, Pennsylvania). The new provider will operate as Carlisle Regional Home Health Services.

William Kauffman, MD, of Carlisle Regional Medical Center, will serve as medical director of Carlisle Regional Home Health Services.