Medical Device Link.

Originally Published MX September/October 2004

MILESTONES

Rita Medical Systems Inc. (Mountain View, CA) announced in late July that it has completed its merger with Horizon Medical Products Inc. (Atlanta). The combined company will continue to operate under the name Rita Medical Systems Inc. and have headquarters in Mountain View, CA. "We are gratified to have received the overwhelming support of our stockholders in approving this merger," said Joseph M. DeVivo, president and chief executive officer of Rita. "We look forward to building a company that will lead the market in medical oncology devices."

Ordoñez

Celera Diagnostics (Alameda, CA) has entered into a collaboration with Merck & Company, Inc. (Whitehouse Station, NJ) to identify novel targets for drug discovery as well as diagnostic markers related to Alzheimer's disease. "Currently there are no definitive diagnostic tests for this devastating disease, which also has limited therapeutic options," says Kathy Ordoñez, president of Celera Diagnostics. "We believe a better understanding of the genetic contribution to Alzheimer's disease could some day result in new products to diagnose and treat the condition."

In late July, The Cooper Companies, Inc. (Lake Forest, CA) and Ocular Sciences Inc. (Concord, CA) announced that they have signed a definitive agreement for Cooper to acquire Ocular Sciences in a cash and stock deal valued at $44 per share of Ocular, for a total of about $1.2 billion. The transaction is expected to close in November. "This acquisition represents an ideal strategic fit for Cooper," said A. Thomas Bender, chief executive officer of Cooper. "Ocular Sciences will add geographic and product-line balance and manufacturing technology know-how. We expect to nearly double our revenue base and enhance our cash flow and profitability."

American Medical Systems Holdings Inc. (Minnetonka, MN) announced that it has entered into a patent cross-licensing agreement with Ethicon Inc. (Somerville, NJ), a Johnson & Johnson company, through its Gynecare worldwide division. Under the agreement, both companies will be cross-licensing patents related to the field of female pelvic health.

Nellcor's Max-Fast forehead sensor.

Nellcor (Pleasanton, CA), a Tyco Healthcare company, has received a 2004 Frost & Sullivan technology innovation award for its contribution to patient care. Nellcor developed a pulse oximetry sensor that provides fast response times in poor perfusion conditions. The noninvasive device enables physicians and healthcare workers to determine oxygen saturation in critically ill patients. The award is presented each year to a company that has demonstrated technological superiority within its industry.

Chandrasekaran

Ophthalmic products company InSite Vision Inc. (Alameda, CA) announced that it has completed a $16.5 million private placement with the receipt of net proceeds from a $14.6 million final tranche. Paramount BioCapital Inc. (New York City) served as placement agent for the financing. "With the financing completed, we are finalizing preparations to enter Phase 3 trials with our lead product candidate, AzaSite," said S. Kumar Chandrasekaran, PhD, president and chief executive officer of InSite. AzaSite is an ocular antibacterial drug that targets eye infections.

Arizant Inc. (Eden Prairie, MN) announced that it has agreed to be acquired by Citigroup Venture Capital Equity Partners LP (New York City). Terms of the acquisition were not released. J. P. Morgan (New York City) acted as financial advisor to Arizant. The company's current management team and headquarters will remain the same.

Biophan Technologies Inc. (West Henrietta, NY) announced that it has acquired a 51% interest in TE Bio LLC, a company developing an implantable biothermal battery using body heat gradients to power medical devices such as pacemakers, defibrillators, and drug pumps. Biophan also announced that it has acquired from New Scale Technologies Inc. (Victor, NY) exclusive worldwide distribution rights for New Scale's ceramic motor for the drug-delivery market. "Our progress over the last quarter has been significant," said Michael Weiner, chief executive officer of Biophan. "This progress is underscored by the continued implementation of Biophan's strategic vision and evidenced by a discussion of potential strategic relationships and licensing agreements." Biophan develops enabling technologies for implanted medical systems, interventional surgical devices, stents, and other implants that can be safely and effectively used under magnetic resonance imaging equipment.

The EndoBench endoscope analysis system by Lighthouse Imaging.

Viking Systems Inc. (La Jolla, CA) has agreed to acquire the assets of Lighthouse Imaging Corp. (Portland, ME) for a combination of cash and stock. The transaction is expected to close in September. "Lighthouse brings to Viking Systems a substantial R&D and engineering capability in advanced optics, fiber optics, and measurement systems," said Thomas B. Marsh, president and chief executive officer of Viking.

CardiacAssist Inc. (Pittsburgh) announced the completion of the 100th U.S. procedure for its percutaneous transseptal ventricular assist system, which helps restore blood circulation through a cardiac catheterization procedure. "We are reaching new levels of acceptance every day, as doctors around the country become more familiar with the relative ease of the procedure and how important a medical tool it is," said Michael Garippa, president and chief executive officer of CardiacAssist.

In August, St. Jude Medical Inc. (St. Paul, MN) signed a definitive agreement to acquire Irvine Biomedical Inc. (IBI; Irvine, CA), a privately held company that develops electrophysiology catheter products used to diagnose and treat cardiac rhythm disorders. St. Jude expects to pay $47 million at closing plus incentive payments of up to $13 million if IBI receives FDA approval of certain systems now in development. The transaction is expected to close at the end of the third quarter.

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