A Medical Device Daily
Theragenics (Buford, Georgia), manufacturer of the TheraSeed palladium-103 cancer treatment device, reported that it has completed its acquisition of CP Medical (Portland, Oregon) for about $19.15 million in cash and 1.885 million shares of stock valued at about $6.25 million, for a deal value of about $25.4 million. The deal was first reported in late April (Medical Device Daily, April 28, 2005).
The $6.25 million in Theragenics’ stock was calculated over a 20-day period from March 28-April 22.
In a conference call yesterday, Theragenics Chairman, President and CEO Christine Jacobs called the deal “exciting, new and material for the company.”
She acknowledged that Theragenics has been seeking “the right diversification opportunity for some time” and that CP Medical “represents a good fit.”
She noted that CP Medical manufactures sutures, cardiac pacing cables and related products for the surgical and veterinary fields. It also makes brachytherapy needles, sleeves and spacers that can be used with Theragenics’ product line.
Theragenics’ products TheraSeed and I-Seed, an iodine-125 based device, are used in the treatment of localized prostate cancer in one-time, minimally invasive procedures.
With 2004 revenues of around $9.6 million and net income of about $1.7 million, acquisition of CP Medical should be accretive to Theragenics’ income in 2005, it said.
Jacobs emphasized that the CP Medical acquisition precisely targeted her firm’s growth objectives, which included a “diversification step for us in areas that were new but at the same time familiar.” And she underlined the benefits for both firms.
She said that as a business of Theragenics, CP Medical would be able to better focus on sales and product development and also benefit from Theragenics’ engineering resources.
Theragenics, in turn, will use CP Medical’s “unique ability for rapid product development and its ability to get new products to market quickly,” Jacobs said.
“They are very quick to market,” she said, while also positioning themselves “as niche players that large competitors choose not to pursue.”
In general, Jacobs said the acquisition “will enhance our position as a fully integrated brachytherapy products company” while representing “new value alternatives to CP’s current customers.”
In other dealmaking:
• Biophan Technologies (Rochester, New York), focused on MRI/device compatibility, has made a Securities and Exchange Commission filing reporting its acquisition of aMRIs and MR Comp, German companies conducting research and development in advanced technologies using MRI.
Biophan acquired 51% of aMRIs, while aMRIs acquired 58.4% ownership of MR Comp. Financial terms were not disclosed.
Biophan said the deal gives it expertise that will help it to produce solutions and products in various biomedical fields that could benefit from improved MRI safety and compatibility. aMRIs, renamed Biophan Europe after the acquisition, now serves as Biophan’s primary European R&D and marketing presence.
“Although these acquisitions of aMRIs and MR Comp are still quite recent, they have already started to yield significant benefits for Biophan,” said Michael Weiner, Biophan CEO. “For example, Biophan Europe has recently announced the start of important animal trials of a pioneering MRI-visible vena cava filter, which are used to prevent serious lung embolisms.”
aMRIs develops MRI systems for enhanced visualization and therapeutic applications. In addition to the vena cava filter, its products include advanced MRI-compatible and active endovascular stents, filters, valves, occluders and catheters. Its resonant circuit technology enables the production of vascular stents and other devices whose interior can be imaged by MRI.
Biophan recently made available MRI images demonstrating the ability of its proprietary resonant frequency circuitry to enable the creation of clear and useful MRI images of vena cava filters.
MR Comp tests medical devices for MRI safety and compatibility and provides product development and training services. It also develops enabling technologies for a variety of implantable devices, and these technologies are being used to create MRI contrast agents, drug delivery systems and power systems derived from body heat.
• Pediatrix Medical Group (Fort Lauderdale, Florida) has entered the Michigan market with the acquisition of a neonatal physician group practice based in Saginaw.
The acquired group provides 24-hour critical care services to newborns admitted to the Level III neonatal intensive care unit of Covenant Medical Center. Pediatrix paid cash for the practice – the amount undisclosed – and the transaction is expected to be accretive to earnings.
Khawar Mohsini, MD, medical director for the Saginaw practice, said, “Pediatrix’s support will enhance the clinical aspects of running the practice through clinical quality initiatives, connection to a larger neonatal community and more time to pursue programs supporting moms and babies in the community.”
Including the acquisition in Saginaw, Pediatrix has completed eight physician practice acquisitions this year.
Pediatrix is a physician group practice providing neo-natal, maternal-fetal and pediatric subspecialty services at more than 220 NICUs and, through Obstetrix, its perinatal physicians provide services in many markets where Pediatrix’s neonatal physicians practice.
• LifePoint Hospitals (Brentwood, Tennessee) reported signing a definitive agreement to acquire Danville Region- al Medical Center (DRMC; Danville, Virginia) and related assets, which have annual revenue of about $180 million.
Kenneth Donahey, president and CEO of LifePoint, said, “Upon completion of the transaction, [DRMC] will be the single largest hospital acquisition by LifePoint to date.”
LifePoint provides healthcare services to non-urban communities, with 50 hospitals, about 5,285 beds. It reported 2004 revenues of about $1.9 billion.
• Kirshner Entertainment & Technologies (KET; Fort Lauderdale, Florida) reported acquiring Linkwell Tech by issuing 36,273,470 shares. Linkwell owns 90% of Shanghai Likang Disinfectant (Shanghai, China). Terms were not disclosed.
Founded by the China Army Second Military Medical University in 1993, Shanghai Likang Disinfectant produces disinfectant healthcare products and services. Likang’s products are used in medical facilities in more than 30 provinces, cities and autonomous regions of China, as well as in nearly 1,000 medical services units in Shanghai, Beijing and Guangdong.