Biotechnology developer Haemacure Corp. (TSX:HAE) said Wednesday it would need to seek additional financing after reporting a drop in revenue and a fiscal 2008 loss that doubled from year-earlier levels.
The Montreal-based company said its 2008 loss grew to $8.8 billion or five cents a share, up from $4 million or three cents a share recorded in 2007.
Haemacure said revenue slipped to $96,571 for the fiscal year ended Oct. 31, 2008. Revenue was down from the $119,704 reported the previous year.
"Haemacure is financing its current activities with the proceeds of the $7.8 million generated through the exercise in June 2008 of warrants issued as part of the private placement it completed in January 2007, and will require additional financing in the near term to support its operations," the company said in a statement.
The private placement was expected to allow Haemacure to get its fibrin sealant into clinical trials in the first quarter of 2009.
Thursday, January 22, 2009
CryoLife, Inc. Receives Tissue From 100,000th Donor, Marking Industry Milestone
CryoLife, Inc. (NYSE: CRY), announced today that it achieved an industry milestone when it received tissue from its 100,000th individual donor. The tissue, received January 14, 2009 came from a Kansas-based organ and tissue procurement organization.
Since 1984, through the generosity of donor families and with the support of the organ and tissue procurement organizations, CryoLife has been able to provide more than 160,000 cryopreserved tissues for transplant.
More than 40 percent of the cardiac tissue preserved by CryoLife is implanted into children for whom the availability of cryopreserved allograft tissue can provide the best chance for a normal, active lifestyle. In addition, cryopreserved allograft vascular tissues have enabled patients with impaired circulatory systems to avoid lower limb amputations.
"It has been very gratifying to be able to provide life-saving and life-enhancing tissues to so many patients over the years," said Steven G. Anderson, president and CEO of CryoLife, "However, none of our work would be possible without the generosity of donors and their families who give so selflessly at a time of personal tragedy. We are grateful to the many people who register as organ and tissue donors. Their kindness is awe-inspiring."
CryoLife encourages everyone to support their local organ or tissue procurement organizations and health care professionals in their efforts to provide increased awareness of organ and tissue donation options. For additional information about organ donation, contact your local organ or tissue procurement organization or the American Association of Tissue Banks at www.aatb.org.
Since 1984, through the generosity of donor families and with the support of the organ and tissue procurement organizations, CryoLife has been able to provide more than 160,000 cryopreserved tissues for transplant.
More than 40 percent of the cardiac tissue preserved by CryoLife is implanted into children for whom the availability of cryopreserved allograft tissue can provide the best chance for a normal, active lifestyle. In addition, cryopreserved allograft vascular tissues have enabled patients with impaired circulatory systems to avoid lower limb amputations.
"It has been very gratifying to be able to provide life-saving and life-enhancing tissues to so many patients over the years," said Steven G. Anderson, president and CEO of CryoLife, "However, none of our work would be possible without the generosity of donors and their families who give so selflessly at a time of personal tragedy. We are grateful to the many people who register as organ and tissue donors. Their kindness is awe-inspiring."
CryoLife encourages everyone to support their local organ or tissue procurement organizations and health care professionals in their efforts to provide increased awareness of organ and tissue donation options. For additional information about organ donation, contact your local organ or tissue procurement organization or the American Association of Tissue Banks at www.aatb.org.
Friday, January 16, 2009
Biotech sector ponders potential 'bloodbath'
A large proportion of small public biotech companies now find themselves at serious risk of going out of business, with not enough cash to see them through the next 12 months and negligible prospects of refinancing. As banks have run out of lending money, as hedge funds and private equity investors have shut up shop and the public equity markets spiraled into a free fall, financing options for cash-hungry biotech companies have dwindled. By the end of November, total capital raised by the industry had fallen by 56% from the previous year, according to data from BioCentury. By the end of this year, the global biotech landscape could look vastly different from the past.
"The current crisis is unparalleled in its scope and severity," says Gautam Jaggi, senior manager at Ernst & Young Global Biotechnology, in New York, and it will lead to substantial consolidation, restructuring, layoffs and delistings (Box 1). According to the Biotechnology Industry Organization (BIO; Washington, DC), 180 quoted US biotech companies have less than a year's cash in hand—the level at which most CEOs,
employees and investors find themselves swallowing hard and considering less palatable options for fueling a company. Of these, 120 have less than six months' breathing space.
Figure 1: Percentage of biotech firms operating with less than one year's cash.
Figure 2: Percentage of cash-poor microcaps in various regions.
"Some companies have already gone under as a result of the credit crunch, while others have had
to scale back their research," says BIO president and CEO Jim Greenwood. Five US biotech companies sought bankruptcy protection during November alone, after October's high-profile default and bankruptcy of inflammatory disease research firm Atherogenics, located in Atlanta. Twenty-four small public biotech firms laid off workers in the eight weeks between November 1 and December 5, Greenwood adds.
What's more, average market valuations have collapsed. BIO reports that, as of November 24, valuations of small caps (it defines small cap as a market capitalization of less than $1 billion) were down 53% from their January 1, 2008, values. In fact, BIO says about 35% of the 270 US small-caps were trading at below cash in early December, meaning stock markets valued the firm at less than their cash on hand.
These depressed valuations mean acquisition opportunities for the larger pharma firms, which are looking for products and companies to plump up pipelines at bargain prices. Johnson & Johnson's purchase of New York–based Omrix, which makes human plasma-derived surgical products such as fibrin sealants, and thrombin, as well as immunoglobulins to treat immune deficiencies and infections is a case in point. The $438 million paid in November by the New Brunswick, New Jersey–based pharma occurred after Omrix's shares had fallen about 40% over the course of 2008.
But sitting on their slush funds, pharma is likely to wait some time longer before it pounces. Dennis Purcell, senior partner of venture capital (VC) firm Aisling Capital of New York, agrees big pharma is circling, but he doesn't expect the mass consolidation that some are predicting. Pharma companies typically do one deal at a time, he says, and "they are all going through strategic reviews of their own, aimed at narrowing down their therapeutic areas." Purcell expects investors in many cash-starved biotech firms to insist on survival at all costs, by trimming activities to match cash reserves and thereby living to fight another day. "Companies are taking pretty drastic measures: delaying projects, cancelling early-stage projects, putting capital where they get most bang for the buck," says Purcell.
The European scene, with its historically weaker financing infrastructure, is suffering even more than the US. Willy de Greef, head of the trade organization EuropaBio in Brussels, says next year could be a "bloodbath."
"[2008] was already not the best of years for new financing rounds, with fewer deals being done," says de Greef. "As for 2009, some of these companies are now in deep trouble. If the banks are beginning to put down the phone on the General Electrics and General Motors of this world, with their huge cash flows, what chance do we have in the biotech industry?" He adds that biotech is "going to be punished with oblivion for reasons over which they have exactly zero control."
The British government has already announced fiscal measures to boost innovative industries, whereas countries like Germany are hesitating but at least making encouraging noises. Meanwhile, UK biotech firms are taking matters into their own hands. Twenty-two leaders from its biotech sector signed a dossier sent to the UK Prime Minister and the Business Secretary. Entitled The UK Biotechnology Sector—Recommendations To Transform the Industry, the dossier calls for the creation of a national biomedical public-private partnership, including a National BioMedical Consolidation Fund and a National Super Growth Biomedical Fund—each worth at least £500 ($742.7) million.
In the US, BIO is lobbying Congress for emergency measures to stimulate biotech investment. It wants capital gains tax on invested funds to be temporarily cut or suspended and emerging companies to be allowed to receive a refund of their net operating losses to set them against research expenses. It also wants more flexibility on the use of R&D tax credits. But Greenwood insists BIO is not asking for a capital infusion.
"Entrepreneurs who go into biotech are survivors, they knew going in it was a highly risky enterprise," he says. "For the most part companies will survive, they will skinny down through the lean times and wait for the recovery."
"The current crisis is unparalleled in its scope and severity," says Gautam Jaggi, senior manager at Ernst & Young Global Biotechnology, in New York, and it will lead to substantial consolidation, restructuring, layoffs and delistings (Box 1). According to the Biotechnology Industry Organization (BIO; Washington, DC), 180 quoted US biotech companies have less than a year's cash in hand—the level at which most CEOs,
employees and investors find themselves swallowing hard and considering less palatable options for fueling a company. Of these, 120 have less than six months' breathing space. Figure 1: Percentage of biotech firms operating with less than one year's cash.
Figure 2: Percentage of cash-poor microcaps in various regions.
"Some companies have already gone under as a result of the credit crunch, while others have had
to scale back their research," says BIO president and CEO Jim Greenwood. Five US biotech companies sought bankruptcy protection during November alone, after October's high-profile default and bankruptcy of inflammatory disease research firm Atherogenics, located in Atlanta. Twenty-four small public biotech firms laid off workers in the eight weeks between November 1 and December 5, Greenwood adds.What's more, average market valuations have collapsed. BIO reports that, as of November 24, valuations of small caps (it defines small cap as a market capitalization of less than $1 billion) were down 53% from their January 1, 2008, values. In fact, BIO says about 35% of the 270 US small-caps were trading at below cash in early December, meaning stock markets valued the firm at less than their cash on hand.
These depressed valuations mean acquisition opportunities for the larger pharma firms, which are looking for products and companies to plump up pipelines at bargain prices. Johnson & Johnson's purchase of New York–based Omrix, which makes human plasma-derived surgical products such as fibrin sealants, and thrombin, as well as immunoglobulins to treat immune deficiencies and infections is a case in point. The $438 million paid in November by the New Brunswick, New Jersey–based pharma occurred after Omrix's shares had fallen about 40% over the course of 2008.
But sitting on their slush funds, pharma is likely to wait some time longer before it pounces. Dennis Purcell, senior partner of venture capital (VC) firm Aisling Capital of New York, agrees big pharma is circling, but he doesn't expect the mass consolidation that some are predicting. Pharma companies typically do one deal at a time, he says, and "they are all going through strategic reviews of their own, aimed at narrowing down their therapeutic areas." Purcell expects investors in many cash-starved biotech firms to insist on survival at all costs, by trimming activities to match cash reserves and thereby living to fight another day. "Companies are taking pretty drastic measures: delaying projects, cancelling early-stage projects, putting capital where they get most bang for the buck," says Purcell.
The European scene, with its historically weaker financing infrastructure, is suffering even more than the US. Willy de Greef, head of the trade organization EuropaBio in Brussels, says next year could be a "bloodbath."
"[2008] was already not the best of years for new financing rounds, with fewer deals being done," says de Greef. "As for 2009, some of these companies are now in deep trouble. If the banks are beginning to put down the phone on the General Electrics and General Motors of this world, with their huge cash flows, what chance do we have in the biotech industry?" He adds that biotech is "going to be punished with oblivion for reasons over which they have exactly zero control."
The British government has already announced fiscal measures to boost innovative industries, whereas countries like Germany are hesitating but at least making encouraging noises. Meanwhile, UK biotech firms are taking matters into their own hands. Twenty-two leaders from its biotech sector signed a dossier sent to the UK Prime Minister and the Business Secretary. Entitled The UK Biotechnology Sector—Recommendations To Transform the Industry, the dossier calls for the creation of a national biomedical public-private partnership, including a National BioMedical Consolidation Fund and a National Super Growth Biomedical Fund—each worth at least £500 ($742.7) million.
In the US, BIO is lobbying Congress for emergency measures to stimulate biotech investment. It wants capital gains tax on invested funds to be temporarily cut or suspended and emerging companies to be allowed to receive a refund of their net operating losses to set them against research expenses. It also wants more flexibility on the use of R&D tax credits. But Greenwood insists BIO is not asking for a capital infusion."Entrepreneurs who go into biotech are survivors, they knew going in it was a highly risky enterprise," he says. "For the most part companies will survive, they will skinny down through the lean times and wait for the recovery."
Even if most of the industry weathers the storm, the effects could ripple out for years. If investors aren't funding today's startups, it could mean a lack of innovation and a dearth of early-stage products five years down the line. Aisling Capital's Purcell notes that venture capitalists' main priority now is to keep their existing portfolios healthy. "There is not enough capital for everybody in the portfolio, so VC companies are triaging to decide where to spend it where it makes most difference," he says. And that doesn't mean startups.
If every downturn has a recovery, then the biotech sector must simply hold on. But it will not come tomorrow, as most estimates put any reversal at least six months if not more than a full year away. Those companies not already affected are anticipating the blade (Box 3 and Figs. 3 and 4). However, E&Y's Gautam Jaggi believes that when the turn does come, it will be big: "There will be a lot of pent-up demand and investors will ultimately return to the IPO [initial public offering] market in a big way," he says. "There will be fewer biotech companies, but the survivors will be the stronger for it."
If every downturn has a recovery, then the biotech sector must simply hold on. But it will not come tomorrow, as most estimates put any reversal at least six months if not more than a full year away. Those companies not already affected are anticipating the blade (Box 3 and Figs. 3 and 4). However, E&Y's Gautam Jaggi believes that when the turn does come, it will be big: "There will be a lot of pent-up demand and investors will ultimately return to the IPO [initial public offering] market in a big way," he says. "There will be fewer biotech companies, but the survivors will be the stronger for it."
Tuesday, January 13, 2009
FDA Panel Backs CSL Ltd Anti-Bleeding Drug Riastap
A Food and Drug Administration panel of outside medical experts Friday backed an anti-bleeding product from a subsidiary of Australia's CSL Ltd. (CSL.AU) to treat a rare blood disorder. The product, which would be sold in the U.S. under the brand name Riastap by CSL Behring, is designed to treat congenital fibrinogen deficiency, a rare bleeding disorder resulting from deficiency of fibrinogen. It's made from human plasma and would boost levels of fibrinogen. The panel unanimously said the product was safe and that it appeared to be effective at treating the blood condition. The panel's decision amounts to a recommendation that the FDA approve the product. The FDA usually follows its panels' advice but isn't required to. The agency has set a Jan. 16 deadline to act on Riastap, although it isn't clear if that deadline will be met given the proximity of the panel meeting. The company estimates only about 300 people in the U.S. have congenital fibrinogen deficiency. Fibrinogen, also known as Factor I, is a protein needed to form a blood clot. Earlier this week, the FDA released a review of Riastap, which said the product appeared to be safe and effective. The agency said clinical studies showed Riastap was effective at increasing clot firmness, but said it will require CSL to continue studying patients to see if it results in a reduction of actual bleeding events. Riastap is being considered under the FDA's accelerated review mechanism, which allows products to be approved on less data than typically required. Companies with products granted accelerated approval are required to continue studying the products and eventually submit the data to gain full or regular approval. Riastap is currently sold in 12 countries under the name Haemocomplettan P, according to the FDA.
ProFibrix Steps up Recombinant Fibrinogen Program With PER.C6(R) License From Crucell
ProFibrix B.V., today announced that it has concluded a commercial license agreement with Crucell N.V. (Euronext, NASDAQ: CRXL; Swiss Exchange: CRX) for PER.C6(R), a unique human protein production platform. The PER.C6(R) platform allows ProFibrix to manufacture recombinant human fibrinogen at levels that support the development and commercial roll-out of new products. Fibrinogen is at the heart of all ProFibrix products and is an essential part of nature's own injury-repair mechanism. The company's lead product Fibrocaps(TM) is based on fibrinogen derived from human blood plasma and is a unique dry powder topical hemostat that stops acute and severe bleeding during surgery or after trauma injury. Initially recombinant fibrinogen will be developed for systemic applications in hemostasis and later on for the development of tissue repair products.
Jaap Koopman, Ph.D., Chief Executive Officer, said: "The PER.C6(R) license gives us access to a manufacturing platform that has already been successfully tested by ProFibrix for high expression of biologically active recombinant fibrinogen. Our Chief Technology Officer Dr. Bram Bout was one of the inventors of PER.C6(R) while at Crucell. His intimate knowledge of the platform in combination with our substantial in-house expertise on the biology of fibrinogen provides us with a strong competitive position in the hemostasis market."
Jan Ohrstrom, MD, Chief Operational Officer, said: "We believe recombinant fibrinogen has the potential to become a breakthrough product in hemostasis and tissue repair. We intend to develop a systemic hemostat product based on recombinant fibrinogen to treat or prevent bleeding in patients with low fibrinogen levels."
Jaap Koopman, Ph.D., Chief Executive Officer, said: "The PER.C6(R) license gives us access to a manufacturing platform that has already been successfully tested by ProFibrix for high expression of biologically active recombinant fibrinogen. Our Chief Technology Officer Dr. Bram Bout was one of the inventors of PER.C6(R) while at Crucell. His intimate knowledge of the platform in combination with our substantial in-house expertise on the biology of fibrinogen provides us with a strong competitive position in the hemostasis market."
Jan Ohrstrom, MD, Chief Operational Officer, said: "We believe recombinant fibrinogen has the potential to become a breakthrough product in hemostasis and tissue repair. We intend to develop a systemic hemostat product based on recombinant fibrinogen to treat or prevent bleeding in patients with low fibrinogen levels."
Tuesday, January 6, 2009
Vivostat
The Danish medical device company Vivostat A/S (formerly known as Vivolution) announced the formation of a new management team to support the aggresive growth plans for the company’s Vivostat product lines.
During the last year the Alleroed-based company has completed a range of cross-organisational projects in order to prepare the company for the future. The outsourcing of the disposable production to a low-cost country, the re-branding of the Vivostat product lines and the establishment of direct sales organisations in major European markets, just to mention a few of the projects.
“The formation of the new management team is an important step in the process of preparing our company for the exciting challenges that lie ahead”, explains Tom Bjerg Laurizen, CEO at Vivostat.
Tom Bjerg Lauritzen continues: “During the last five years Vivostat has expanded from being a R&D focussed company into a significant commercial player in the surgical sealant and wound care markets. The establishment of the new management team reflects this change and lays a strong foundation for the company’s aggressive growth plans in the future”.
Together the new management team represents many years of medical device experience within sales, marketing and regulatory/medical affairs. Besides Tom Bjerg Lauritzen, the group consists of Anne Klitgård, VP of Regulatory and Medical Affairs, Henrik Vester-Andersen, VP of Sales, and Martin Poulsen, VP of Marketing.
Vivostat is already a well-established player in the European surgical sealant and wound care markets with sales of its products in 19 countries. To continue the expansion the company recently initiated the US approval process for the newest member of the Vivostat product family, Vivostat PRF - a second generation growth factor product used for the treatment of chronic wounds.
Chronic wounds are a serious problem for many diabetic patients and there is currently very little success with conventional treatment methods.
During the last year the Alleroed-based company has completed a range of cross-organisational projects in order to prepare the company for the future. The outsourcing of the disposable production to a low-cost country, the re-branding of the Vivostat product lines and the establishment of direct sales organisations in major European markets, just to mention a few of the projects.
“The formation of the new management team is an important step in the process of preparing our company for the exciting challenges that lie ahead”, explains Tom Bjerg Laurizen, CEO at Vivostat.
Tom Bjerg Lauritzen continues: “During the last five years Vivostat has expanded from being a R&D focussed company into a significant commercial player in the surgical sealant and wound care markets. The establishment of the new management team reflects this change and lays a strong foundation for the company’s aggressive growth plans in the future”.
Together the new management team represents many years of medical device experience within sales, marketing and regulatory/medical affairs. Besides Tom Bjerg Lauritzen, the group consists of Anne Klitgård, VP of Regulatory and Medical Affairs, Henrik Vester-Andersen, VP of Sales, and Martin Poulsen, VP of Marketing.
Vivostat is already a well-established player in the European surgical sealant and wound care markets with sales of its products in 19 countries. To continue the expansion the company recently initiated the US approval process for the newest member of the Vivostat product family, Vivostat PRF - a second generation growth factor product used for the treatment of chronic wounds.
Chronic wounds are a serious problem for many diabetic patients and there is currently very little success with conventional treatment methods.
The Vivostat® System is an automated system for the on-site preparation and application of patient-derived fibrin sealant or platelet rich fibrin (PRF®). It incorporates a unique and patented biochemical process that produces an autologous sealant from 120 ml of the patient’s own blood in only 23 minutes. The sealant has biophysical properties that outperform most sealants on the market today and a delivery system that enables unparalleled control in the application during surgery.The system comprises three components: A Processor Unit for the preparation of fibrin sealant or PRF®, an Applicator Unit to control the delivery of fibrin sealant/PRF® and a disposable kit comprising all components required to collect blood and apply the sealant to the surgical site.
Monday, December 29, 2008
Fibrin glue deal talks stalled / Plaintiffs claiming substance caused hepatitis infections uncompensated
Settlement talks have reached an impasse for plaintiffs involved in lawsuits against the government over claims they were infected with the hepatitis C virus after being administered fibrin glue during surgery.The government has cited that a causal link is unclear between the glue, a compound of fibrinogen and other substances used as a surgical adhesive for stitches made in heart and other types of surgery, and the hepatitis infections.
Since the January enactment of a special measures law to provide compensation to patients, about 600 plaintiffs have reached a settlement with the government. The plaintiffs who received state compensation were infected with the virus after being administered with a fibrinogen blood product.
However, the vast majority of plaintiffs claiming they were infected by the virus after being administered fibrin glue have yet to be compensated.
So far, only four such plaintiffs have reached a settlement with the government, according to a national group of lawyers representing hepatitis C victims that were infected by the virus through tainted blood products.
This leaves about 160 plaintiffs who have been unable to claim what the government says are blanket relief measures.
A 27-year-old man from Kanagawa Prefecture was diagnosed with acute hepatitis after a heart operation when he was 5. His condition is now chronic.
For many years, he did not know what the source of his infection was, but in light of the many media reports on the issue of hepatitis caused by tainted blood products, he made an inquiry to the hospital that operated on him at the end of last year and learned that fibrin glue was used in his surgery.
He brought a case against the government in April, but no progress has been made toward reaching a settlement.
A doctor recommended that he undergo interferon treatment, which is known to be effective for hepatitis C sufferers. But treatments costs several tens of thousands of yen a month, and the man lacks the funds to pay for it.
"The glue may have saved my life, and I bear no grudge against the hospital," the man said. "But I can't think of anything else that could have caused the infection, and I want the government to compensate me soon."
Fibrin glue is believed to have been administered to about 79,000 people in the 1980s.
But the glue is applied to incisions and wounds and differs from fibrinogen, which is used as a hemostatic agent and administered by intravenous injection.
The government has said "the infection rate is unclear because [fibrin glue] is not injected directly into blood vessels."
Settlements have only been reached so far with individuals whose infection is clearly linked to the application of the glue.
"By March, we hope to collect scientific data and establish fixed criteria for settlements," a Health, Labor and Welfare Ministry spokesman said. "Should a clear causal link be found, we'll swiftly begin settlement procedures."
The lawyers group says it has confirmed cases of infection from the use of minute quantities of the glue, and on Friday submitted a written demand to five district courts at which lawsuits are in progress--those in Tokyo, Osaka, Nagoya, Fukuoka and Sendai.
"The glue's danger is clear," the demand states. "[The government] should reach settlements as quickly as possible."
Thursday, December 25, 2008
CPC Adds Key Bench Strengths to Medical and Technical Advisory Team
CPC of America, Inc. (OTCBulletinBoard: CPCF.OB) , a company focused on the development of therapeutic devices that enhance the quality of patient care in endovascular procedures, announced the addition of three medical and technical advisors to its team. Dr. Olexander Hnojewyj, Dr. James L. Rogers and Richard E. Anderson will add strategically important bench strengths to the team's expertise as they work to develop MedClose(TM), an investigational*-stage vascular closure system (VCS) that is intended to seal the femoral arterial puncture site following diagnostic or interventional catheterization procedures. Information on CPC's advisory team can be found at CPC's enhanced corporate Web site, CPCMedDevices.com.
Tuesday, December 23, 2008
Merry Christmas and Seasons Greetings
To All Readers I would just like to pass on my thanks for your support over the past year.
So to all Merry Christmas and a Happy New Year!!!
St Jude Medical acquires Radi Medical Systems for $250 million
US-based St Jude Medical has completed the acquisition of Sweden-based Radi Medical Systems for $250 million in cash.
With this transaction, Radi Medical Systems will become part of the St Jude Medical cardiovascular division. The transaction is expected to be neutral to St Jude Medical's consolidated earnings per share in 2009 and is expected to be positive to consolidated earnings per share beginning in 2010.
St Jude Medical funded the acquisition with cash on hand outside the US as well as with the proceeds from a new three-year term loan established recently with a syndicate of banks.
In connection with the transaction, Banc of America Securities acted as financial advisor to St Jude Medical, and Sidley Austin and Mannheimer Swartling Advokatbyra are serving as legal counsel to St Jude Medical and Katsky Korins and Advokatfirmen Lindahl are serving as legal counsel to Radi Medical.
Daniel Starks, chairman, president and CEO of St Jude Medical, said: "This acquisition will accelerate the expansion of St Jude Medical's cardiovascular growth platform and benefit the customers, employees and shareholders of both companies. We look forward to capturing strategic synergies through this acquisition and further expanding our investment in our cardiovascular division technology, products and programs."
Thomas Engstrom, CEO of Radi Medical Systems, said: "We are pleased to join with the industry leader in active vascular closure and a partner who shares our vision of developing innovative cardiovascular technologies that improve patient care. This transaction brings together complementary product lines and, through St Jude Medical's sales and distribution infrastructure, extends our reach to even more physician customers for the benefit of the patients they help everyday."
With this transaction, Radi Medical Systems will become part of the St Jude Medical cardiovascular division. The transaction is expected to be neutral to St Jude Medical's consolidated earnings per share in 2009 and is expected to be positive to consolidated earnings per share beginning in 2010.St Jude Medical funded the acquisition with cash on hand outside the US as well as with the proceeds from a new three-year term loan established recently with a syndicate of banks.
In connection with the transaction, Banc of America Securities acted as financial advisor to St Jude Medical, and Sidley Austin and Mannheimer Swartling Advokatbyra are serving as legal counsel to St Jude Medical and Katsky Korins and Advokatfirmen Lindahl are serving as legal counsel to Radi Medical.
Daniel Starks, chairman, president and CEO of St Jude Medical, said: "This acquisition will accelerate the expansion of St Jude Medical's cardiovascular growth platform and benefit the customers, employees and shareholders of both companies. We look forward to capturing strategic synergies through this acquisition and further expanding our investment in our cardiovascular division technology, products and programs."
Thomas Engstrom, CEO of Radi Medical Systems, said: "We are pleased to join with the industry leader in active vascular closure and a partner who shares our vision of developing innovative cardiovascular technologies that improve patient care. This transaction brings together complementary product lines and, through St Jude Medical's sales and distribution infrastructure, extends our reach to even more physician customers for the benefit of the patients they help everyday."
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