CryoLife Takes Step To Wrest Control Of Reluctant Partner Medafor
This article was originally published in The Gray Sheet
Executive Summary
CryoLife's purchase of an 8% equity stake in privately held surgical hemostat maker Medafor on Jan. 13 could be the first step of a hostile takeover
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CryoLife ends Medafor acquisition bid
Developer of human-tissue-based products ends its bid to acquire privately held surgical hemostat maker Medafor for $2 per share, citing Medafor's reluctance to enter into a purchase agreement and frustration with a recent Medafor deal with component supplier Magle Life Sciences, which CryoLife believes has caused "significant dilution" in Medafor shareholder value. Medafor announced on March 18 that it would treat as terminated the exclusive distribution agreement that it has with CryoLife, citing CryoLife's "failure to provide adequate assurance that it would properly perform its obligations" under the deal. CryoLife remains Medafor's largest shareholder (1"The Gray Sheet" Jan. 18, 2010)
CryoLife ends Medafor acquisition bid
Developer of human-tissue-based products ends its bid to acquire privately held surgical hemostat maker Medafor for $2 per share, citing Medafor's reluctance to enter into a purchase agreement and frustration with a recent Medafor deal with component supplier Magle Life Sciences, which CryoLife believes has caused "significant dilution" in Medafor shareholder value. Medafor announced on March 18 that it would treat as terminated the exclusive distribution agreement that it has with CryoLife, citing CryoLife's "failure to provide adequate assurance that it would properly perform its obligations" under the deal. CryoLife remains Medafor's largest shareholder (1"The Gray Sheet" Jan. 18, 2010)
Acquisitions In Brief
Cooper Surgical buys Her Option from AMS: American Medical Systems divests its Her Option global endometrial ablation system to Cooper Surgical for $20.5 million in a deal announced Feb. 16. The cryoblation therapy system, which generated about $10 million in sales last year, fits with Cooper Surgical's core strength in the obstetrics/gynecology office space. Meanwhile, the sale of the technology to the Cooper Companies' women's health care unit will allow AMS "to focus our resources on addressing unmet needs in our established pelvic health markets while maximizing the return to our shareholders for this non-strategic asset," AMS explains. Her Option was first approved by FDA in 2001 to treat excessive menstrual bleeding by using extreme cold to ablate the endometrial lining of the uterus. AMS acquired the technology through its purchase of CryoGen in 2002 (1"The Gray Sheet" Dec. 23, 2002). Separately, on Feb. 16, AMS reported fourth-quarter sales of $146 million, up 9% from the same quarter last year