CareFusion Agrees to Purchase Medegen for $225M

CareFusion Corp., a spinoff of Cardinal Health, has agreed to acquire Medegen Inc., a manufacturer of needleless access valves and administration sets that deliver intravenous (IV) medication to patients, for $225 million in cash, according to the San Diego, Calif., firm.

Catheter-related blood stream infections have been shown to increase a patient’s hospital stay by 10 to 24 days, with approximately 25 percent of the 250,000 annual incidents resulting in death, according to CareFusion.

Medegen products help to reduce catheter-related blood stream infections, which have been shown to increase a patient’s hospital stay by 10 to 24 days. Medegen markets needle-free IV disposable products under the MaxPlus and MaxGuard brands to help healthcare providers prevent catheter occlusions, the firm said.

CareFusion became a public company on Sept. 1, 2009 from the spinoff of Cardinal Health’s clinical and medical products business, and Medegen, which is based in Ontario, Calif., would be its first acquisition. Cardinal Health is based in Dublin, Ohio.

“We look forward to completing the acquisition and welcoming Medegen employees to CareFusion,” David Schlotterbeck, the company’s chief executive, said. “In addition to the complementary nature of our infusion product lines, we have similar company cultures that are committed to innovation and dedicated to the health care providers we serve.”