A Medical Device Daily

Positron (Houston, Texas), a manufacturer of positron emission tomography (PET) systems, reported acquiring exclusive licensing rights to sell and further develop Cadenza software. Terms of the purchase were not disclosed.

Cadenza software, developed by Dr. George Diamond, employs Bayes' theorem to analyze and report results of various clinical descriptors and noninvasive tests relative to the diagnosis of coronary artery disease.

Positron said in a statement: “The data indicates that Bayes' theorem and Cadenza is an accurate, clinically applicable means for quantifying the prevalence of angiographic coronary artery disease, the risk of multi-vessel disease, and the incidence of morbid coronary events in the year after testing.”

Joseph Oliverio, president of Positron, said, “Assessing pre-test probability of disease accurately will be an essential tool for diagnostic testing facilities applying for prior-authorization approval from insurance companies. The use of Cadenza at a Positron customer site in New York State was critical for establishing and sustaining reimbursement.

“Cadenza software is a very important component to expand the acceptance of cardiac PET as a first line test in coronary disease similar to that of the well established SPECT technology,” he said. “We believe that we will position Cadenza software to be embraced and demanded by Positron users and insurance companies across the country. Cadenza is the leading software algorithm that ensures the use of clinical evidence-based medical software in deciding which test to approve in order to maximize patient outcome benefit and minimize overall costs.”

Positron manufactures advanced medical imaging devices utilizing PET technology under the name Posicam. Posicam systems incorporate proprietary software and technology for the diagnosis and treatment of patients in the areas of cardiology, oncology and neurology and are in use at various medical facilities.

Encore Medical (Austin, Texas) reported that it will sell its Slendertone U.S. consumer product line – consisting of “toning” and exercise/fitness products – for about $6.8 million in cash, primarily for the Slendertone inventory and all of the Slendertone distribution rights in the U.S., to Bio-Medical Research (Galway, Ireland).

Bio-Medical Research is a private company that developed, manufactures, distributes and owns all intellectual property rights to the Slendertone product line. Encore said it intends to use the net proceeds from this sale toward its core surgical implant and orthopedic rehabilitation businesses.

Kenneth Davidson, CEO and chairman of Encore, said, “We believe the divesture of this non-core product line sharpens our strategic focus on our core surgical implant and orthopedic rehabilitation product lines. We acquired the U.S. Slendertone consumer product line as part of the Compex Technologies acquisition we completed in February of this year.” Encore paid about 18 million shares of Encore common stock and incurred about $17 million in debt to acquire Compex (Medical Device Daily, Feb. 28, 2006).

The transaction is expected to close by June 30.

Encore is an orthopedic device company that manufactures a range of orthopedic devices used by orthopedic surgeons, physicians, therapists, athletic trainers and other healthcare professionals for patients with musculoskeletal conditions resulting from degenerative diseases, deformities, traumatic events and sports-related injuries.

Through its Orthopedic Rehabilitation Division, Encore distributes electrical stimulation and other orthopedic products used for pain management, orthopedic rehabilitation, physical therapy, fitness and sport performance enhancement. Encore's Surgical Implant Division offers reconstructive joint products and spinal implants.

In other dealmaking news, 3M (St. Paul, Minnesota) reported entering into a definitive agreement to acquire the safety business of POMP Medical and Occupational Health Products (Porto Alegre, Brazil), a provider of products such as earplugs, eyewear, and hand creams, including related trademarks and patents. Terms of the transaction were not disclosed.

POMP brand reusable earplugs are made of medical-grade silicone. The trend in the safety industry is toward more comfortable products so that workers are more willing to use proper safety equipment. In addition, emerging markets prefer reusable earplugs over disposable earplugs because of lower total cost.

Combined with 3M's line of hearing protection products, including disposable earplugs, the acquisition of POMP reusable earplugs allows 3M to offer a broader portfolio of hearing protection products. The acquisition also brings POMP brand eyewear and hand creams to 3M Brazil.

“Adding POMP's brand of reusable earplugs, eyewear and hand cream products to our portfolio enhances our ability to service our customers in Brazil and will give us access to advanced technologies and designs in a fast-growing segment in the hearing protection industry,” said Mike Kelly, division vice president, Occupational Health and Environmental Safety Division.

The transaction is expected to close at the end of the month, subject to customary closing conditions.