CardioTech International Considers Selling MN-Catheter Unit

Med-tech firm CardioTech International Inc. is considering selling off its Minnesota business unit. CardioTech (AMEX: CTE), based in Wilmington, has hired an investment banker that will help it evaluate strategic alternatives for its Catheter and Disposables Technology (CDT) business, which is based in Plymouth, Minn. CDT designs and provides contract manufacturing services for medical devices. The division has about 40 employees, according to a 2007 securities filing. When CardioTech acquired the business for $1.3 million in 2001, the unit, which also operates a clean room for manufacturing devices, had about 20 workers. CardioTech CFO Eric Walters said in a recent conference call with investors that CardioTech is narrowing its focus to licensing polymers and coatings for medical devices. “We believe our future is in the material science technology business,” he said. As part of the shift in focus, CardioTech has already sold its Rancho Santa Margarita, Calif.-based Gish Biomedical Inc. subsidiary to German med-tech firm Medos Medizintechnik AG firm for $7.5 million in an all-stock deal. The division had about 95 employees. CardioTech has not yet set a time frame for when it plans to determine the future of its CDT unit. However, the firm already is in discussions with strategic and financial buyers. CardioTech’s products and devices are geared toward treating cardiovascular, orthopedic, urological and other diseases. The publicly held company recorded about $4.73 million in revenue for the nine months ended Dec. 31, up from sales of $4.2 million during the same period in 2006. CardioTech posted a loss of $4.4 million for the same nine-month period in 2007, down from a loss of $2.38 million during the same period in 2006. SOURCE: Mass High Tech