CryoCath Technologies (Montreal, Quebec), a developer of cryotherapy products to treat cardiovascular disease, reached an agreement with Endocare (Irvine, California) to acquire the exclusive and permanent global rights to SurgiFrost, a surgical probe system to ablate cardiac arrhythmias. CryoCath said it would pay Endocare up-front and milestone payments totaling $10 million as well as a nine-year descending royalty stream based on net sales of the system. Endocare will transfer all of its manufacturing assets and inventory related to the cardiac product line to CryoCath and will exclusively license to CryoCath for cardiovascular uses Endocare's technology associated with the system The SurgiFrost device uses a malleable, single use cryosurgical probe developed to treat cardiac arrhythmias. It is used while a patient is undergoing a primary cardiac surgical procedure such as coronary artery bypass grafting or mitral valve replacement and/or repair. CryoCath originally licensed the five-year global marketing rights for SurgiFrost in September 2001 and subsequently launched the product in June 2002. To finance the acquisition, CryoCath signed a letter of intent with Biolevier, a financial initiative under the auspices of Investissement Quebec, which will lead to a definitive agreement providing CryoCath with a C$20 million loan to finance the SurgiFrost purchase and other research and development projects. National Bank Financial acted as financial advisor to CryoCath for the transaction. As part of the deal, CryoCath obtained a non-compete covenant from Endocare in the cardiovascular field that lasts for 12 years, which is applicable to any new owner Endocare might have in the future

Guidant (Indianapolis, Indiana) reported that it has acquired a majority interest in an early-stage company focused on developing fully biosabsorbable vascular stent platforms. Guidant acquired the venture from SyneCor (Research Triangle Park, North Carolina), paying $10 million for a 51% stake in the company. When certain conditions of the purchase agreement are met, Guidant will acquire the remaining 49% for $6 million, which it said is expected to occur in early 2004. Guidant also will make payments upon the achievement of certain regulatory milestones. SyneCor is a generator of new medical technology companies, formed in 2000 via $10.5 million in funding from a group of device companies. The venture acquired by Guidant is working to develop vascular stent platforms that will be safely absorbed by tissue following the restoration of blood flow in patients with coronary artery disease. The new Guidant subsidiary will be established as an entrepreneurial venture in the Silicon Valley. John Capek, PhD, formerly president of Guidant's Vascular Intervention unit, will lead the new initiative.

Spectranetics (Colorado Springs, Colorado) said it has acquired the assets of privately held LaTIS, a Minnesota-based developer of technology that is used to treat ischemic stroke. Terms of the acquisition include a $100,000 purchase price and potential royalties on stroke-based disposable catheter sales, if approval to commercially market laser-based products to treat ischemic stroke is received from the FDA. "This acquisition solidifies our commitment to stroke as a target market that we believe we can serve extremely effectively," said John Schulte, Spectranetics' CEO. "The clinical trial protocol developed by LaTIS, their relationship with key interventional neuroradiologists and the work performed in animals is expected to save us anywhere from six to 12 months of development time. We hope to complete the necessary animal studies this year and, if successful, anticipate a request to the FDA in 2004 to begin clinical trials in humans." Spectranetics makes single-use medical devices used in minimally invasive surgical procedures within the cardiovascular system in conjunction with its CVX-300 excimer laser system.

St. Jude Medical (St. Paul, Minnesota) completed its acquisition of Getz Bros. Co. (Tokyo), the largest distributor of St. Jude's products in Japan. The company announced the planned deal last September. St. Jude Medical paid about $230 million in cash to acquire all of the outstanding common stock of Getz Bros. It said it believes the transaction will be neutral to earnings per share in 2003 and accretive in 2004 and beyond. The new organization, known as Getz Bros. Co. Ltd., a St. Jude Medical Company, will continue to be led by Paul Bond, current president of Getz Bros. Getz Bros. will continue to distribute several medical device products from other manufacturers.

Patient monitoring firm Welch Allyn (Skaneateles Falls, New York) and MRL (Medical Research Laboratories; Buffalo Grove, Illinois), a manufacturer of therapeutic and monitoring cardiovascular devices, said that they have concluded a merger in which Welch Allyn has acquired all outstanding shares of MRL stock. The value of the purchase was not disclosed. Peter Soderberg, president and CEO of Welch Allyn, said the acquisition complements his company's expansion into the patient monitoring and diagnostic cardiology markets. MRL makes high-end defibrillators, multi-parameter monitors and automated external defibrillators. Welch Allyn said it expects to be able to leverage the firms' combined strengths to deliver new products and solutions across both monitoring and cardiopulmonary business units. Welch Allyn earlier this year acquired Cardio Control NV (Delft, the Netherlands), a maker of diagnostic systems for heart and lung function.