Around The Industry

Health Industry Today, Jan, 1999

n Allegiance Corporation, McGaw Park, Ill., and Cardinal Health, Dublin, Ohio, have announced that their proposed merger has cleared the waiting period under the Hart-Scott-Rodino Anti-trust Improvements Action of 1976. The merger, which is still subject to approval by Allegiance and Cardinal shareholders, and the satisfaction or waiver of certain other conditions, is expected to be completed in the first half of 1999 and will create a $21 billion health care products and services company.

Terms of the transaction call for Allegiance shareholders to receive a fixed exchange of .6225 Cardinal common shares for each share of Allegiance common stock owned. n Spinal Concepts, Inc., Austin, Texas, has closed on an $8.2 million round of venture capital which will be used to expand the company's sales and marketing efforts, fund ongoing clinical trials for the InFix(tm) Interbody Fusion System and support current research and development activities. Vector Fund Management led the financing round. Spinal Concepts is a privately held medical device company which produces spinal implant products used in the treatment of spinal disorders, diseases and injuries. Since June 1996, Spinal has raised over $12 million in private and venture-based capital. n Vision-Sciences, Inc., Natick, Mass., will undertake a voluntary recall of the Sigmoidoscope EndoSheath(r). Recent testing showed a small quantity of the product might leak during use. However, no customer complaints have indicated the occurrence of leaks. Vision-Science develops, manufactures and markets flexible endoscopic products utilizing disposable sheaths. n Everest Medical Corporation, Minneapolis, Minn., has reached a settlement with Boston Scientific Corporation, Natick, Mass., in two separate interference actions declared by the United States Patent and Trademark Office involving bipolar electrosurgical scissors design. Everest Medical has been declared the senior party in a metal-on-metal bipolar scissors technology which the firm is currently manufacturing and marketing. In the second action, that involves an alternate bipolar scissors design not commercialized by either party, Boston Scientific has been declared the senior party. n IMAGYN Medical Technologies, Inc., Newport Beach, Calif., has licensed its MicroSpan(tm) microhysteroscopy product line to Ethicon, Inc., Somerville, N.J. Terms of the transaction include cash payments totaling $4 million, part of which is contingent upon development and commercial milestones. In addition, IMAGYN has agreed to supply its products on an exclusive basis to Ethicon for a two-year period. The MicroSpan(tm) product line includes a 1.6mm microhysteroscope which allows visual access to the uterus under local anesthesia. Ethicon, Inc. is an affiliate of Johnson & Johnson, New Brunswick, N.J. IMAGYN has also agreed to sell its impotence product lines to Timm Research Comany for approximately $25.8 million. n Midmark Corporation, Versailles, Ohio, has acquired the French holding company Aretem and its subsidiaries Promotal and Beaumond. The French companies manufacture health care and specialty items including examination tables and stretchers and have annual sales of approximately $10 million. Midmark Corporation is a privately held manufacturer of medical, dental and hospital equipment. n Tri-anim, Sylmar, Calif., has announced its acquisition of Ridge Medical, Chicago, Ill., a specialty distributor of heath care equipment and supplies. Tri-anim has also signed a five-year contract with Health Services Corporation of America to provide respiratory, anesthesia and critical care specialty products. n McKesson Corporation, San Francisco, Calif., has completed its acquisition of Red Line HealthCare Corporation, Golden Valley, Minn., a subsidiary of Novartis and a distributor of medical supplies and services to the extended care industry. Red Line had sales of approximately $375 million for the 12 months ending August 31, 1998, and supplies 10,000 customers in 50 states from 11 distribution centers and eight satellite facilities. McKesson president Paul Julian said the acquisition will significantly strengthen that firm's product offerings in the extended-care marketplace. n Palomar Medical Technologies, Lexington, Mass., is negotiating the sale of its majority owned subsidiary, Star Medical Technologies, Inc., to Coherent, Inc., Palo Alto, Calif. Palomar is a supplier of proprietary laser systems for hair removal and other cosmetic laser treatments. Sale price is expected to be in the $60-$65 million range. n Photon Data Inc., Winter Park, Fla., has agreed to stop making, selling or distributing eye-laser equipment in the United States that has not been approved by the FDA. The company also agreed to let the government destroy ten eye lasers and related equipment valued at