A Medical Device Daily

Derma Sciences (Princeton, New Jersey), a manufacturer and full line supplier of wound and skin care products, reported completing the acquisition of the assets, as well as the assumption of trade payables, of Western Medical (Tenafly, New Jersey) for $6.5 million, of which $6 million was paid in cash and $500,000 in a three-year seller note. Western Medical makes specialty medical textile dressing products, including compression wound care and support bandages, tubular retention bandages, and protective dressings that are used in long term and home care settings.

“Western Medical is an ideal fit for our General Wound Care business,“ said Ed Quilty, chairman and CEO of Derma Sciences. “The product lines are highly complementary and the two companies utilize the same distributor network and sales points.

In conjunction with the acquisition, Derma raised $6.5 million through the sale of 10.9 million shares of common stock.

Investors in the private placement also received 2.7 million common stock purchase warrants exercisable at $1 per share.

Agilent Technologies (Palo Alto, California) reported that it has acquired privately held SynPro (Boulder, Colorado), the owner of a contract manufacturing facility established to supply active pharmaceutical ingredients and provide related services. Financial details were not disclosed.

The SynPro facility manufactures short synthetic DNA and RNA molecules that are becoming more important to the pharmaceutical and biotech industries as components of drugs for use in clinical trials. SynPro will join the New Business Group within Agilent.

Agilent said that emerging biopharmaceutical companies engaged in drug development will increasingly need to rely upon the technical expertise and operating sophistication of their vendors for successful commercialization of complex components.

Agilent said that the acquisition will enable it to offer an array of value-added services, including development of analytical methods and processes, stability studies, quality control, and regulatory support, it said.

Based on Agilent and industry estimates, the size of the combined RNA/DNA synthesis market is about $700 million in 2006, with anticipated growth in the range of 10% to 20% per year.

Agilent said it has hired 22 employees associated with this transaction, most of whom have been working together at the Boulder facility since 2002.

Agilent provides bio-analytical and electronic measurement solutions to the communications, electronics, life sciences, and chemical analysis industries. It operates in three segments: Electronic Measurement, Bio-Analytical Measurement, and Semiconductor Test Solutions.

In other dealmaking news:

• AmeriPath (Palm Beach Gardens, Florida), a provider of anatomic pathology, dermatopathology and molecular diagnostics services, said it has acquired Rose Pathology Associates (Denver) for an undisclosed sum.

The company said the acquisition represents its latest effort to expand its Colorado-based services.

Rose Pathology Associates' specialists, qualified in pulmonary pathology, cytopathology and hematopathology, also include a fellowship-trained breast pathologist.

AmeriPath Colorado (Colorado Pathology Consultants) is a group of 20 pathologists and more than 100 employees providing specialized anatomic and clinical pathology services to clients throughout the state of Colorado.

• Neuroscience Therapy (San Dimas, California) reported that it has obtained the exclusive rights to the North American market to distribute its leading product P-Stim. It now holds rights in North, South and Central America.

The company said that acquiring the rights to distribute P-Stim in North America should greatly enhance its revenue stream.

P-Stim is a miniaturized electro-stimulation device that operates on the principle of auricular acupuncture. Micro-processor controlled, it generates a low frequency electrical pulse which is transmitted to the peripheral nerve endings in the ear.

This stimulation results in the release of endorphins which are substances that have an analgesic or pain relieving effect.

P-Stim is placed behind the ear with an adhesive and the pulses are transmitted via stimulating needles in the ear muscle to the nerve endings in this muscle.

• ResCare (Louisville, Kentucky), a provider of residential, training, educational and support services for people with disabilities and special needs, said it has signed a definitive agreement to purchase the operations and assets of Armstrong Uniserve and Armstrong Unicare (AUI; both Tacoma, Washington).

AUI provides in-home personal care and respite services to the elderly and individuals with developmental, intellectual, cognitive and other disabilities.

The company said it expects the acquisition to generate about $28 million of annual revenue and is scheduled to close in May.

• Crdentia (Dallas), a U.S. provider of healthcare staffing services, has acquired Staff Search , a provider of per diem nursing and allied medical staffing services throughout major metropolitan areas in Texas. Terms of the transactions were not released.

Staff Search, which operates primarily in Houston, San Antonio, Austin and Dallas, was founded in 1984 and generated 2005 annual revenues of about $13 million. Staff Search says it has hospital and allied clientele data covering more than 3,500 healthcare professionals, including nurses and allied health professionals.

James Iden, company founder, has joined Crdentia's senior management and will be responsible for rolling out allied staffing services to Crdentia's other offices.