A Medical Device Daily

GE Healthcare (Waukesha, Wisconsin) reported completing its $1.2 billion acquisition of IDX Systems (South Burlington, Vermont), a healthcare information technology (IT) provider.

Together, the companies said they will create a leading healthcare IT vendor with one of the most comprehensive suites of clinical, imaging and business information systems available.

The deal was first disclosed this past September.

GE said it expects the acquisition to accelerate efforts to seamlessly connect clinicians from physicians' offices to hospitals with comprehensive, enterprise-wide electronic health record (EHR) solutions, creating a digital community that supports more efficient and cost-effective patient care.

“The combination of these two companies positions GE as a leading provider of global healthcare information solutions and, by further enabling the integration of our customers' IT systems, enhances our ability to help them streamline healthcare costs, reduce medical errors and enhance and improve the quality of patient care,“ said Joe Hogan, president and CEO of GE Healthcare. “In addition, our expanded IT product offerings will provide healthcare practitioners with powerful new capabilities and tools, like comprehensive EHRs, to help physicians diagnose and treat disease earlier than ever before.“

Vishal Wanchoo, president and CEO of GE Healthcare's Information Technologies business, will lead the combined business, with global headquarters in Barrington, Illinois, and offices in Burlington, Vermont; Boston; Seattle; and London, along with satellite offices both within and outside the U.S.

“GE's acquisition of IDX allows us to provide new and more comprehensive ways for healthcare practitioners to manage the explosion of data that has emerged from the healthcare industry,“ said Wanchoo. “GE's IT tools, capabilities and global scope have the potential to transform the way healthcare is delivered.“

St. Jude Medical (St. Paul, Minnesota) reported completing the $50 million acquisition of privately held Savacor (Los Angeles) first unveiled last month.

Launched in late 2000, Savacor develops heart failure diagnostic and therapy guidance products and technologies, currently in clinical evaluation. Its activities are based on the premise that fixed-dose therapies do not adjust well for changing conditions of congestive heart failure (CHF) and that an implanted sensor can provide continuing assessment for better management.

St. Jude said the acquisition complements its efforts already underway in managing CHF.

Savacor has heart failure diagnostic and therapy guidance products and technologies under development and in clinical evaluation, including a small implantable sensor device in clinical trials that helps physicians detect and manage symptoms associated with progressive heart failure.

In connection with the transaction, St. Jude said it will record a $50 million R&D charge in 4Q05.

The implantable sensor device developed by Savacor, dubbed the HeartPOD Heart Failure Therapy System (POD standing for physiologically optimized dosimeter), measures left atrial pressure (LAP) and body temperature enabling real-time adjustments in therapy. An increase in LAP works to force water into the lungs, creating the pulmonary congestion that gives CHF its name, and it is estimated that pulmonary congestion produces about 90% of CHF-related hospitalizations.

In other dealmaking news:

• Datascope (Montvale, New Jersey) reported closing on its acquisition of the Clearglide endoscopic vessel harvesting product line of the Ethicon (Cincinnati) CardioVations division on the previously disclosed terms, with a portion of the $3.25 million purchase price payable upon the closing of the proposed acquisition of Guidant (Indianapolis) by Johnson & Johnson (New Brunswick, New Jersey).

Endoscopic vessel harvesting devices enable less-invasive harvesting of suitable vessels for use in conjunction with coronary artery bypass grafting.

The vessel harvesting product line will be integrated into Datascope's Cardiac Assist Division. Cardiac Assist develops counterpulsation therapy used to provide temporary assistance to the heart in critical care settings, such as for cardiogenic shock, high-risk coronary angioplasty/stenting procedures and coronary artery bypass surgery.

• Life sciences provider Cambrex (East Rutherford, New Jersey) reported that its board has decided to discontinue the company's acquisition program aimed at transforming the company into a specialty therapeutics enterprise, it said, due to “the increasing cost to acquire companies in this sector, coupled with the risk of achieving an appropriate return on investment.“

Cambrex also intends to retain an investment banker to examine strategic alternatives including the potential sale of certain assets.

It said that any proceeds from asset sales may be used to support further growth in “bioproducts“, pay down debt, repurchase Cambrex stock or make complementary strategic acquisitions in all segments.

Cambrex said it will concentrate its resources on the Bioproducts segment and capitalize on its leadership positions in cell biology, molecular biology, rapid microbial testing and cell therapy manufacturing.

The Human Health and Biopharma segments will continue to be allocated the appropriate resources necessary to maintain their leading market positions, the company added.

As a result of this change in strategy, it was mutually agreed that John Leone, president and CEO, will leave the company, effective Jan. 15. Leone joined Cambrex in August 2004 for the purpose of leading the company's entry into the specialty therapeutics market.

James Mack, chairman of the Cambrex board, will serve as acting president and CEO.