Medical Devices Today has provided a roundup of the most recent device and diagnostics deals, mergers and alliances from July and August from Windhover Information and FDC Reports’ Strategic Transactions - The Device Deal Database. Our proprietary database is designed for medical technology professionals and investors that need to stay current on the latest industry alliances, financing, mergers & acquisitions and other strategic partnerships.
Mergers & Acquisitions
- APP Pharmaceuticals Inc. & Fresenius Kabi (a division of Fresenius SE) Germany's Fresenius SE (hospital, home care, and dialysis products) will pay $23 per share in cash (a 40% premium) to acquire all of the outstanding stock of US-based injectables manufacturer APP Pharmaceuticals. The deal is valued at about $3.7bn, plus the assumption of $940mm in debt, and the potential of an additional $970mm in sales-based earn-outs (what the companies refer to as "contingent value right").
- Bio Med Sciences Inc. & Uluru Inc. Uluru (controlled-release drug delivery for wound, burn, and plastic surgery care) announced that it will acquire private wound healing company Bio Med Sciences for $10mm ($7mm of which is payable up front and $3mm within six months of the deal closing) in cash or cash and $3mm of Uluru common stock.
- GE Healthcare (a division of General Electric Co.) & Vital Signs Inc. GE Healthcare has agreed to buy Vital Signs (anesthesia, respiratory, sleep therapy, and emergency medicine single-patient use products) for $990mm or $74.50 in cash (a 27% premium) for each VS common share. VS will become part of GE Healthcare's Clinical Systems business unit, which offers technologies for monitoring patients, delivering anesthesia, and providing acute respiratory care.
- Northstar Neuroscience Inc. Venture capitalist Tang Capital Partners has made an unsolicited offer to buy the 82% of public company Northstar Neuroscience (neuromodulation devices) it doesn't already own for approximately $48mm. Northstar responded to the bid, stating the offer is not in the best interests of shareholders, and says it will continue to evaluate strategic alternatives. Founded in 1999, Northstar is developing the cortical stimulation device Renova for several neurological diseases.
- Reliant Technologies Inc. & Thermage Inc. After withdrawing its IPO at the end of last year, Reliant Technologies has now been acquired by fellow aesthetic device company Thermage for approximately $95mm, consisting of $25mm in cash, 23.6mm Thermage shares (valued at about $63mm), and the assumption of $7mm in debt. Reliant markets the Fraxel re:pair laser system for soft tissue ablation and coagulation, resurfacing, pigmentation, vascular dyschromia, and rhytides; Fraxel re:store for wrinkles, pigmented lesions, melasma, coagulation, removal of acne and surgical scars, and actinic keratoses; and Fraxel re:fine for lesions, melasma, fine lines, and resurfacing.
Alliances
- 3M Health Care Ltd. (a division of 3M Co.) & Greystone Pharmaceuticals Inc. 3M Health Care has received exclusive worldwide rights from wound care company Greystone Pharmaceuticals to distribute wound dressings that incorporate Greystone's PHI technology. 3M had previously licensed rights to sell Greystone's DerMax dressing in Europe and Canada. Through the current deal, its rights to the product (which it will brand as Epi-Max in the US) expand to include the US and most other major countries in the world.
- Affymetrix Inc. & Asuragen Inc. Asuragen licensed fellow molecular diagnostics company Affymetrix rights to market its in vitro transcription (IVT) reagent kits for use with its own diagnostic microarray platform.
- Agendia BV & Ferrer inCode (a division of Grupo Ferrer Internacional) Agendia BV (gene expression analysis) has granted Ferrer inCode (the molecular diagnostics division of Grupo Ferrer Internacional) exclusive rights to sell its MammaPrint and CupPrint cancer diagnostics in certain European markets.
- Artann Laboratories Inc. & ProUroCare Medical Inc. Diagnostic imaging companies ProUroCare Medical and Artann Laboratories have entered into two agreements that will further the mechanical imaging development and marketing capabilities of each party. In the first deal, Artann has granted ProUroCare exclusive worldwide rights to its technology for the development of mechanical imaging products for the diagnosis and treatment of urological disorders involving the prostate, kidney, or liver. The second agreement calls for Artann to conduct all remaining development and regulatory activities pertaining to ProUroCare's ProUroScan prostate mechanical imaging system.
- BB Medical & Spectral Diagnostics Inc. Spectral Diagnostics (infectious disease tests) licensed BB Medical (Russian distributor of medical technologies) exclusive rights to market and sell its rapid EAA Endotoxin Activity Assay in Russia. EAA is the only FDA-approved test for detecting levels of human endotoxin, which is an indicator of patients at risk for sepsis.
- BioElectronics Corp. & Piramal Healthcare Ltd. BioElectronics licensed Piramal Healthcare (formerly Nicholas Piramal) rights to distribute its ActiPatch in India. ActiPatch is a cost-effective wound healing patch that alleviates pain and swelling and speeds up recovery time for soft tissue injuries.
- Bristol-Myers Squibb Co. & Dako AS Dako AS (antibodies, reagents, instruments, and software for pathology labs) has agreed to develop diagnostics that will identify patients most likely to respond to Bristol-Myers Squibb's cancer drug candidates. Dako will use its pharmacoDiagnostics (pharmDx) assays to design the pharmacogenomics tests.
- Centre for Addiction & Mental Health & TheraGenetics Ltd. TheraGenetics (studying genetic influences on responses to neurological drugs) has received rights to depression drug testing IP from Canada's Centre for Addiction & Mental Health. Specifically the intellectual property covers methods and kits for identifying patients likely to experience certain adverse effects from antidepressants.
- Gentag Inc. & MacroArray Technologies LLC Gentag (wireless sensors for diagnostics) and MacroArray Technologies (biomarker discovery platform) will combine Gentag's cell phone technology with MacroArray's urine-based cancer diagnostic to develop a wireless immunoassay for prostate cancer.
- IDev Technologies Inc. & YMed Inc. IDev Technologies (radiology and cardiovascular devices) has agreed to become the exclusive North American and European distributor of YMed's (vascular intervention devices) VascuTrak 2 focal force PTA catheter.
- Metabolon Inc. & University of Texas Health Science Center (a division of University of Texas) The University of Texas Health Science Center will work with Metabolon (identifies biomarkers for use in diagnostics) to develop tests that can help physicians identify patients that are prone to diabetes.
- Psynova Neurotech Ltd. & Rules-Based Medicine Inc. Biomarker testing laboratory Rules-Based Medicine (quantitative, multiplexed immunoassays) and neuropsychiatric biomarker start-up Psynova Neurotech have teamed up to co-develop a blood test to diagnose schizophrenia.
Financings
- Arbel Medical Ltd. Israeli cryotherapy developer Arbel Medical has raised $4.5mm through a second financing round led by Giza Venture Capital. The company was founded in 2005, and is developing minimally invasive devices to remove benign and malignant tumors. Its IceSense device uses cryoprobes to apply pulses of extreme cold (liquid nitrogen) directly onto diseased tissue such as benign breast tumors (fibroadenomas).
- BG Medicine Inc. BG Medicine (molecular diagnostic tests) has raised $40mm through the closing of its Series D venture round. The company will use the funds to finish development of and market its first two diagnostics--one to distinguish between which heart-failure patients will remain stable and which ones will quickly decline and another test to determine those that may be at risk of heart attack in the next 2-3 years.
- Calibra Medical Inc. Calibra Medical (formerly Seattle Medical Technologies) brought in $35mm via its Series B financing led by first-time backer Canaan Partners. The company will use the money for the anticipated 2009 launch of its easy-to-use insulin delivery device.
- CardioKinetix Inc. CardioKinetix (cardiovascular device company) has raised $14.5mm through the closing of its Series C venture round. Cutlass Capital, JP Morgan Partners, and US Venture Partners led the financing and were joined by new backer H&Q Capital Management.
- Cardium Therapeutics Inc. Cardium Therapeutics (cardiovascular products) has grossed $3.34mm through the private sale of 1.67mm common shares at $2 each (a 7% discount). The accredited institutional investors also received warrants to buy another 569k common shares at the same price. Empire Asset Management was the placement agent.
- CleveX Inc. CleveX (dermatology devices) has raised $1.4mm through the closing of its Series B venture round. Plymouth Venture Partners led the financing and was joined by WPWIII Cap and the Esposito Group. The company will use the funds to market its ExiClip surgical tool to excise cancerous and non-cancerous skin lesions.
- Core Essence Orthopaedics LLC Medical device firm Core Essence Orthopaedics raised $5mm in a financing round led by NewSpring Capital. The company is developing minimally invasive devices for soft tissue repair of the upper and lower extremities. Proceeds from the round will support product development and commercialization, expected by the end of this year.
- CVRx Inc. CVRx Inc. (developing the Rheos system to control hypertension) has raised $84mm through the closing of its Series E venture round. The company will use the funds to continue its pivotal trial to gain FDA approval for the Rheos device (it is already CE Marked in Europe) and to build a sales and marketing team prior to launching the product. CVRx has raised over $209mm since it was formed in 2001.
- Dexela Ltd. Dexela (diagnostic imaging start-up) closed its second round of financing, raising £2.6mm ($5.2mm) from investors including Close Ventures and London Technology Fund. Along with its first round, and grants, Dexela has brought in more than £4.7mm to date. The company will put the proceeds toward continuing development and commercialization of its 3D x-ray breast imaging technology.
- Electro-Optical Sciences Inc. Electro-Optical Sciences (developing a handheld device to non-invasively diagnose melanoma) netted $11.1mm through a registered direct offering of 2mm common shares at $5.68 each (an 11% discount) to undisclosed accredited investors. Needham & Co. was the placement agent. Proceeds will be put towards final development and pre-commercialization activities for the company's MelaFind melanoma detection instrument.
- Genomic Vision Genomic Vision (diagnostics and drug discovery for cancer and acute diseases) raised €4mm ($6.3mm) through its Series B round. Genomic Vision utilizes its Molecular Combing Technology, which was developed by the company's CEO and licensed exclusively from the Institut Pasteur, to analyze genomes and detect genetic mutations (microdeletions or amplifications) that might cause certain diseases.
- HandyLab Inc. HandyLab (infectious disease diagnostics) brought in $19.2mm through its Series D financing round to first-time backers Dow Ventures and Lurie Investments and returning shareholders Arboretum Ventures, Ardesta, DuPont Ventures, EDF Ventures, SBV Venture Partners, and the University of Michigan's Wolverine Investment Fund. The company will use the money to support the recent launch of its Jaguar automated PCR system.
- Healionics Corp. Healionics (biomaterials) has raised $1.3mm of a planned $6mm Series B venture round. The company will use the funds for preclinical studies of its Sphere Templated Angiogenic Regeneration (STAR) biomaterial for aesthetic applications, obesity, diabetes, wound care, and infusion devices and to refine the manufacturing process.
- Illumina Inc. Illumina (gene expression profiling, SNP genotyping, and other genetic analysis tools) has netted $298mm by selling 3.5mm shares at $87.50 each to public investors.
- MedaSorb Technologies Corp. MedaSorb Technologies (blood purification technology) raised $4.45mm (which includes $175k in convertible debt) through the private sale of Series B 10% cumulative convertible preferred stock led by the NJTC Venture Fund with participation from Cahn Medical Technologies, Adelson Partners, Alpha Capital, and Ellis International. The company will use the money for an ongoing sepsis study in Germany of its hemoadsorption device and to gain the CE Mark.
- NanoMR Inc. NanoMR (technology to detect infections) has raised $5.5mm through its Series A round led by VSpring Capital. NanoMR is developing a device to speed up the amount of time it takes (from days down to just minutes) to get results from blood cultures. The device could be used to test for blood-borne bacteria such as MRSA and E.coli.
- NuPathe Inc. NuPathe (transdermal patch and implantable drug delivery technologies for CNS conditions) raised $30mm through a Series B round that was led by Quaker BioVentures and GlaxoSmithKline's venture arm SR One.
- OrthoData Inc. Orthopedic device start-up OrthoData raised $1.1mm in its Series A financing round led by the Kentucky Seed Capital Fund. The company is finishing the design and preclinical studies of an implantable device that is designed to help orthopedic surgeons accurately monitor the progress of spinal fusion procedures and possibly prevent the need for future exploratory procedures.
- Pacific Biosciences Pacific Biosciences (genetic testing to predict drug outcomes) has raised $100mm through its Series E venture round. Deerfield Capital Management and Intel Capital co-led the financing and were joined by fellow new investors Morgan Stanley, Redmile Group, T. Rowe Price, and an undisclosed financial institution.
- ReGen Biologics Inc. Orthopedics company ReGen Biologics raised $2.5mm through the private sale of unsecured 8% notes due July 24, 2009. ReGen concurrently announced its submission for 510(k) approval of its collagen scaffold device to repair meniscus tissue.
- RF Surgical Systems Inc. Device company RF Surgical Systems brought in $8.2mm with its Series A financing round led by Menlo Ventures with participation from Stanford University. RF Surgical will use most of the proceeds to continue selling its FDA-approved and CE-marked RF Surgical Detection System in the US and expand the product into the European market.
- Spineology Inc. Spineology (minimally invasive devices and implants for spinal surgery) raised $7.5mm in a private financing led by Oakridge Financial with participation from various other investors.
- Tandem Diabetes Care Inc. Tandem Diabetes Care (developing a device to deliver insulin) raised $13.05mm in its Series B financing led by Domain Associates, which was joined by TPG Biotech and Second Technology Capital Investors.
- Tyrell Inc. Tyrell (hand-held medical device to treat acne) has raised $28mm through its Series E venture round. Sante Ventures and Catterton Partners co-led the financing and were joined by current backers Austin Ventures. The company will use the funds to broaden distribution of its Zeno product line and launch new devices, including one in development for cold sores.
- Vertos Medical Inc. Vertos Medical (developing a minimally invasive treatment for lumbar spinal stenosis) brought in $12mm through its Series C financing led by CHL Medical Partners and Foundation Medical Partners. Returning shareholders Aweida Venture Partners and DFJ Mercury also participated.
- Xoft Inc. Xoft (x-ray tube technology for brachytherapy) raised $25mm through its Series E round. New investor Chicago Growth Partners led and was joined by returning backers MPM Capital, Sutter Hill Ventures, Maverick Capital, and Frazier Healthcare Ventures.
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