A Medical Device Daily
Healthcare product provider Covidien (North Haven, Connecticut) reported that one of its subsidiaries has acquired Scandius Biomedical (Littleton, Massachusetts), a developer of devices for sports-related surgeries. Financial terms were not disclosed.
Scandius uses a network of distributors to sell products used in the arthroscopic reconstruction of the anterior cruciate ligament: the Stratis® ST Femoral Fixation System and the TriTis® Tibial Fixation System. The systems consist of instrumentation and both non-absorbable and bioabsorbable polymer implants.
Covidien’s Medical Devices segment currently sells a range of products for sports-related surgeries, including soft tissue repair devices and access products.
“The acquisition of Scandius Biomedical demonstrates our commitment to the growing sports surgery market and enables us to further capitalize on our historic strengths in minimally invasive surgery,” said Scott Flora, president, Surgical Devices, Covidien. “With the combination of Scandius Biomedical products and those we have developed internally, Covidien will be able to offer our customers innovative soft tissue repair devices for common sports surgery procedures.”
Arteriocyte Medical Systems (Cleveland) reported that it has struck a deal with Medtronic (Minneapolis) that includes the purchase of Medtronic’s Magellan Platelet Business, an exclusive, five-year distribution agreement in the cardiac surgery market and a manufacturing services agreement for the Magellan products.
Medtronic’s cardiac surgery sales force includes 80 representatives throughout North America and Europe, placing the Magellan system in more than 400 surgical centers, it said.
The Magellan System, a one-source biologic concentrator and delivery system, collects and concentrates platelets and white blood cells from a small volume of the patient’s own blood, providing a supply of plasma as a foundation for autologous platelet gel. Medtronic says the system presents an opportunity to accelerate wound healing and reduce infection in cardiac surgery, plastic and reconstructive surgery, orthopedics and vascular surgery.
“The acquisition positions our company to capitalize on the convergence of medical device and biologic delivery for patients, further differentiating our cellular therapy strategy,” said Don Brown, Arteriocyte CEO. He called the Magellan System “the best platelet separation technology available” and “a leader in cardiac surgery.”
Financing for the transaction was provided by DW Healthcare Partners, and Comerica Bank’s Technology and Life Sciences Division.
In other dealmaking news:
•DJO (Vista, California) said that its stockholders have adopted the agreement and plan of merger with ReAble Therapeutics (Austin, Texas). The company says it expects to close the deal before the end of the year.
In July DJO said it had entered into an agreement under which an affiliate of ReAble will acquire all outstanding shares of DJO ’s common stock for $50.25 a share in cash (roughly $1.3 billion) and the assumption of $300 million in DJO debt (Medical Device Daily, July 17, 2007). An affiliate of The Blackstone Group is the controlling shareholder of ReAble.
DJO is a provider of products for musculoskeletal and vascular health.
• Derma Sciences (Princeton, New Jersey), a manufacturer of advanced wound care products, reported the acquisition of the first aid division of privately held NutraMax (Gloucester, Massachusetts), a health-related products manufacturer.
Derma will acquire the division for $13 million, consisting of $11 million in cash and $2 million held in escrow, subject to certain manufacturing cost targets being met. In addition to adding about $17 million of revenues to Derma, the acquisition is expected to contribute about $3.5 million in 2008 cash flow.
“The adhesive strip, private-label market size is an $86 million market with plenty of opportunities for growth,” said Edward Quilty, president/CEO of Derma Sciences. “We have developed a strong reputation for efficient manufacturing, which we believe will help give the first aid division’s product line some key competitive advantages in the market.
• PerkinElmer (Waltham, Massachusetts) reported completing its previously disclosed tender offer to acquire all outstanding shares of common stock of ViaCell (Cambridge, Massachusetts) for $7.25 a share, in cash (MDD, Oct. 15, 2007). Based on ViaCell’s 38.8 million outstanding shares as of Aug. 7, the deal is worth about $281.6 million.
The initial offering period for the tender offer expired at midnight, EDT, Nov. 9, with about 37.9 million shares of ViaCell common stock being tendered, including about 6.8 million shares tendered under guaranteed delivery procedures, for $7.25 per share. All shares that were validly tendered have been accepted for purchase, representing more than 90% of the outstanding shares of ViaCell common stock.
PerkinElmer said it intends to acquire all of the remaining ViaCell shares by means of a short-form merger at the same price-per-share paid in the tender offer, and ViaCell will become an indirect wholly owned subsidiary of PerkinElmer.
The company has said it is buying ViaCell to expand its product line in the neonatal and prenatal markets. ViaCell makes ViaCord, which preserves umbilical cord blood.