American Medical Systems Holdings (Minnetonka, Minnesota) said it has agreed to acquire CryoGen (San Diego, California) for $40 million in cash, plus an additional payment contingent on future sales of CryoGen's HerOption products for excessive menstrual bleeding, or mennorrhagia. HerOption is a less-invasive treatment for this condition using a microprocessor-controlled probe to freeze the lining of the uterus and reduce its ability to regenerate. The HerOption procedure can be done in the gynecologist's office, enabling the woman to keep her uterus and normal hormonal levels and avoiding the hospital stay and recovery time associated with a hysterectomy. American Medical Systems develops devices and procedures to treat incontinence, erectile dysfunction and urinary obstructions caused by enlarged prostate (benign prostate hyperplasia, or BPH), often through minimally invasive surgery.
Boston Scientific (Natick, Massachusetts) said it has signed a definitive agreement to acquire the shares of InFlow Dynamics (Munich, Germany), a stent technology development company. Eckhard Alt, MD, an interventional cardiologist who sought to address some of the unmet clinical needs faced by his peers, founded the company in 1996. Terms of the agreement were not disclosed. InFlow has four clinical trials in process evaluating new materials and coatings.
Cardinal Health (Dublin, Ohio) finally consummated its deal for Syncor International (Woodland Hills, California) after a troubled courtship involving allegations of improper payments made to foreign countries by subsidiaries of Syncor that were uncovered by Cardinal during the due diligence process. The acquisition value, originally close to $1.1 billion, has been lowered after renegotiation of the deal by Cardinal due to a drop in Syncor's stock valuation associated with U.S. regulatory action. The deal was first announced in mid-June. Under the terms of the revised agreement, Syncor stockholders will now receive 0.47 of a Cardinal Health common share in exchange for each outstanding share of Syncor common stock. The original merger agreement had provided for a 0.52 exchange ratio. The renegotiated deal is now valued at about $809.25 million. Syncor's core domestic nuclear pharmacy business and the Central Pharmacy Services (CPSI) business of Cardinal Health will be combined. Syncor is a provider of nuclear pharmacy services, medical imaging, niche manufacturing and radiotherapy.
Coherent (Santa Clara, California) has signed a definitive agreement to acquire Molectron Detector (MDI; Portland, Oregon) for $11.5 million in cash. MDI develops laser test and measurement equipment used across all photonics based applications and markets. Coherent said that MDI and its senior management team would continue to operate from its base in Portland. Coherent makes lasers, laser systems, precision optics and related accessories
Guidant (Indianapolis, Indiana) has expanded its venture into information technology and information management with the purchase of Cardiac Intelligence (CIC; Seattle, Washington) for about $19 million. Guidant said the acquisition will enhance its Advanced Patient Management program. CIC owns a portfolio of patents developed by Gust Bardy, MD, while at the University of Washington (Seattle, Washington), in the field of ambulatory, remote, wireless monitoring of the heart functions of patients, including those implanted with devices such as pacemakers, defibrillators and resynchronization devices. Guidant's Advanced Patient Management system is focused on enabling physicians to monitor patient heart function "remotely and automatically." Guidant intends to equip its pacemakers, defibrillators and resynchronization devices with telecommunications and information technologies enabling "real-time awareness, diagnosis and treatment of abnormal heart rhythms" in order to decrease hospitalizations and follow-up physicians visits, as well as reducing the overall costs of disease management.
Hanger Orthopedic Group (Bethesda, Maryland) said it acquired the assets of the Orthotic and Prosthetic (O&P) operations of Greater Chesapeake Orthopaedic Associates, whose facilities are located in Baltimore, Bel Air, Lutherville and Westminster, Maryland. Hanger is a national public company specializing in patient-care services for orthotics and prosthetics. The company now provides O&P services in 578 patient-care centers located in 44 states as well as the District of Columbia and is the largest distributor of O&P supplies and components in the country. Hanger also provides O&P services to more than 1,000 managed care programs through the Hanger OPNET system.
Sutura (Fountain Valley, California) said it has received an offer of merger to buy out all of its shareholders and provide the necessary operating capital to build its sales and marketing force, and operate the company through to profitability. The unnamed European-based venture group, which has been in negotiations with Sutura for the past several months, delivered the signed definitive agreement to Sutura's board of directors, which is currently reviewing the agreement. Sutura makes a line of suture-based closure devices called SuperStitch. The company currently markets the product in Europe and the U.S.