Industry News
Creganna Acquires Tactx Medical Inc.
2010 is shaping up to be a year of new beginnings for Creganna. Not only does the Marlborough, Mass.-based company have a new vision and strategic focus, it also has a new partner and new name.
In an effort to become an “end-to-end solution partner” to its customers, Creganna acquired Tactx Medical Inc., which also trades as Avalon Medical Services Pte Ltd. Terms of the deal were not disclosed.
Industry experts said the acquisition will give the new company (aptly named Creganna-Tactx Medical) a stronger presence in the minimally invasive device market. Combined, the new firm will employ 800 people and maintain offices on three continents. In addition, it will offer a wide range of services that Creganna-Tactx executives hope will help it become a one-stop-shop strategic partner for customers.
“Creganna-Tactx Medical will combine Creganna’s expertise in metal shafts, injection molding and materials science and Tactx Medical’s expertise in extrusion, braiding/ coiling and balloons to fully serve customers’ needs,” stated a nine-page manifesto that presents the vision for the new company and explains the benefits of the acquisition to stakeholders. “Creganna-Tactx Medical will be well positioned to compete for full-service contracts on a global basis from design through manufacture, to assembly and end-of-life product management.”
Creganna-Tactx Medical CEO Helen Ryan called Tactx Medical a true fit for the company and used a page of the manifesto to list the similarities shared by the two firms. Besides sharing a customer base and global focus, both companies have similar values and brand promise to its partners, Ryan noted.
“This move represents a key step in Creganna’s vision to build a leading global medical technology company. Tactx Medical, with its strong market reputation, is a true fit for Creganna,” Ryan said in a statement. “Medical device companies are increasingly looking to strategic partners to fulfill more of their supply chain requirements. With our global locations, combined technologies and range of services, Creganna-Tactx Medical is strategically positioned to meet these evolving needs.”
In addition to its corporate headquarters in Marlborough, Mass., Creganna has facilities in Minneapolis, Minn.; San Diego, Calif.; Galway, Ireland; and Mariehamn, Finland. Tactx Medical is based in Campbell, Calif., and has facilities in Plymouth, Minn.; and Singapore.
Together, the two companies booked 2009 revenue of $110 million. Both firms provide technology and services to assist in minimally invasive surgeries.
Equity Firm Acts as Broker for CTW-Tegra Medical Deal
Riverside Partners LLC, a Boston, Mass.-based private equity firm, has acquired an orthopedic contract manufacturing company on behalf of its client, Tegra Medical.
Terms of the deal between Riverside and CTW Inc., a Hernando, Miss.-based firm, were not disclosed. A news release about the acquisition said that CTW will leverage Tegra’s “organizational infrastructure” to help the 34-year-old company further penetrate the orthopedic market.
“We are excited about our partnership with Tegra Medical, [which] can provide ongoing resources, including sales and marketing resources, to support future growth,” said Dale Cole Jr., CTW president. “We are excited about working with Riverside Partners because of their experience in growing leading healthcare businesses. Riverside can provide additional capital and resources to help the company continue its growth.”
Riverside has a history of growing healthcare companies. In October 2007, the firm purchased three businesses to form Tegra Medical: New England Precision Grinding Company of Holliston, R.I.; Accu-Met Laser of Cranston, R.I.; and American Medical Instruments of Dartmouth, Mass. Tegra manufactures wire and tublar components and is based in Franklin, Mass. Philip Borden, a general partner at Riverside, said the acquisition of CTW and its affiliation with Tegra Medical will help the company better meet the needs of its current and future customers. “CTW’s strong position in the spine and trauma specialties, its long-term customer relationships and its manufacturing facility make it a perfect fit,” he said.
Tegra Medical’s CEO claimed the move will help his company continue to provide clients with “innovative products” as well as quality and service.
BeamOne Adding New E-beam Sterilization Service Center
BeamOne LLC is expanding again.
The San Diego, Calif.-based medical product sterilization firm is locating an electron beam sterilization service center in tiny Saxonburg, Pa., a borough of 1,629 residents situated 23 miles northeast of Pittsburgh. The company is leasing 24,200 square feet of warehouse/office space at the Victory Road Business Park for the facility, which is scheduled to open in October.
News of the company’s latest sterilization service center broke just four months after BeamOne announced the expansion of its service center in Lima, Ohio, a city about 72 miles north of Dayton.
The company increased warehouse space there by 45 percent and enlarged the pre-sterilization area. The expansion project also enhanced the facility’s special handling/testing setup area and added refrigeration storage capability for temperature-sensitive products.
The sterilization service center in Saxonburg would be the company’s fifth to offer e-beam sterilization services. Its other facilities are located in San Diego; Lima; Denver, Colo.; and Alajuela, Costa Rica. The Costa Rican facility opened in January 2009.
“Sterilization is becoming a regional service, it just doesn’t make sense for customers to ship products across the country to sterilize,” said Glenn Thibault, BeamOne’s president and CEO. “Pittsburgh is a good location for us as a growing biosciences area.”
Massaro Properties LLC, a Pittsburgh-based commercial real estate company, is acting as developer, architect and contractor for BeamOne’s new facility.
BeamOne will provide sterilization services for all medical products made at the Saxonburg site. The facility plan will provide the company with the opportunity to add a second e-beam system if necessary to meet future customer demand. BeamOne offers e-beam sterilization to the medical device, pharmaceutical, labware manufacturing and tissue processor industries.
Roper Industries Buys Verathon as Part of $356M Deal
Roper Industries Inc. has purchased Bothell, Wash.-based device firm Verathon Inc. and traffic software company United Toll Services for $356 million.
Describing itself on its Web site as a “diversified growth company,” Roper Industries did not separate the purchase price for the two companies. Together, the acquired firms are expected to generate more than $140 million in revenue and $38 million in earnings.
Roper operates through several business units: Industrial Technology; Radiofrequency Technologies; Energy Systems & Controls; and Scientific and Industrial Imaging, which includes medical imaging devices and consumables for urology and other ultrasound applications.
Founded in 1984 as Diagnostic Ultrasound Corp., Verathon will operate within Roper’s Scientific and Industrial Imaging business unit, and provide the company with several imaging products to market. The most notable of the products is the BladderScan, a non-invasive device that prevents unnecessary urinary catheterizations, reduces the rates of urinary tract infections and helps diagnose urinary-related problems such as enlarged prostate, according to Verathon.
Verathon’s GlideScope video laryngoscopes (gained through its $10 million acquisition of Saturn Biomedical Systems in 2006) provide a real-time view of a patient’s airway and help doctors with endotracheal tube placement.
“We are pleased to add Verathon, its leadership team and employees to our growing medical businesses,” said Brian Jellison, Roper’s president, chairman and CEO. “Gerald McMorrow, Verathon’s founder, has built a strong business, and we look forward to continuing its growth, both organically and through acquisitions.”
The acquisition is not expected to affect the leadership at Verathon and United Toll Services. Roper Industries reported sales of $486 million in the third quarter of 2009.
Biotech in Brief
Biotechnology Industry Organization (BIO) President and CEO Jim Greenwood gave high marks to the healthcare reform package passed by the U.S. Senate shortly before Christmas. Greenwood praised the legislation for its establishment of a federal approval process for biosimilars and the creation of a therapeutic discovery project tax. In a statement posted on BIO’s Web site, Greenwood said the proposed therapeutic discovery project tax would create and save thousands of jobs as well as help small and emerging biotech firms offset the costs of therapeutic development activities…The Michigan Economic Development Corp., Ann Arbor SPARK, Greater Wayne Economic Development Corporation and a private foundation have joined forces to create the Michigan Life Science and Innovation Center in Plymouth. Featuring a 57,518-square-foot facility and state-of-the-art laboratories, the center will connect well-funded, experienced entrepreneurs with business accelerator programs and startup life science firms…J. Greg Davis has been elected board chairman and Cindy Clark has been appointed president of the North Carolina Advanced Medical Technologies Center of Innovation, a new, nonprofit corporation created to promote the growth of the Tar Heel State’s advanced medical technologies industry. The center was recently awarded a four-year, $2.5 million grant from the Centers of Innovation Program at the North Carolina Biotechnology Center…Salaries in the life sciences sector defied expectations last year, increasing 5 percent, according to a 2009 salary survey conducted by The Scientist. The increase exceeds the 2008 inflation rate of 3.8 percent, the survey found. Some of the more notable conclusions from the survey were: Women’s salaries are lower than their male counterparts; life sciences professionals working on the East or West coasts earned more money than Midwesterners; and the greatest percentage increase in salaries went to professionals working with patents, licensing and trademarks, followed closely by those involved in clinical research…The Kansas Bioscience Authority is planning to dole out $52 million to research laboratories and biotechnology companies this year. Some of the funds will be used to maintain existing programs, while a portion will go toward the creation of new programs to help entrepreneurs or boost cancer research. The authority also plans to invest in early-stage firms and establish Heartland BioVentures, a new venture capital fund in the Kansas City region…Edwards Lifesciences Corporation is expanding its manufacturing and R&D capability by building a new state-of-the-art manufacturing facility in Draper, Utah. The company expects to transfer manufacturing of its cannula and embolic protection devices from its existing plant in Midvale, Utah, to Draper in the first half of the year…Biotech funding appears to be on the rebound, as the valuations of U.S. companies jumped 87 percent last year, according to John Craighead, managing director for investor relations and business development at BIO. In publicly traded markets, biotechs have bounced back from the red with an 80 percent decrease in the number of companies valued less than cash, he said.
ISO Certifications
• Accumetrics Inc., a San Diego, Calif.-based developer of tests that assess platelet response to antiplatelet therapies, has received ISO 13485:2003 certification. Timothy I. Still, Accumetrics president and CEO, said the certification will help the company “aggressively pursue ambitious growth strategies” and international expansion plans this year.
• AMD LASERS LLC, an Indianapolis, Ind.-based provider of laser technology for dental professionals, has achieved ISO 13485:2003 certification. The company’s president and CEO said the achievement will help the firm sell its products in Europe.
• ISO 9001:2008 certification has been awarded to Argo Translation Inc., a Glenview, Ill.-based provider of translation and localization services for companies throughout North America. Last fall, Argo launched its medical translation solution—the Regulatory Compliance Platform—which provides transparent supply chain quality assurance to medical device, pharmaceutical and financial services firms.
• C&J Industries Inc., a Meadville, Pa.-based medical contract manufacturer, has achieved ISO 13485:2003 certification for its contract assembly, subassembly and injection molding services. In addition, the firm’s quality management system has received ISO 9001:2008 certification. President Dennis Frampton said the certifications are part of an ongoing strategic plan to meet or exceed the requirements of C&J’s medical and pharmaceutical customers.
• ISO 13485:2003 certification has been awarded to CleveMed (Cleveland Medical Devices Inc.), a Cleveland, Ohio-based company that develops and manufactures products for sleep and movement disorders. The firm’s chairman and CEO said the certification will open up new European markets for CleveMed and help the firm double its commercial sales in the next two years.
• Electronic Technologies International Inc., a Fort Atkinson, Wis.-based electronics manufacturing service provider, has received ISO 9001:2008 certification. The certification covers the Quality Management System for custom design and contract manufacturing of printed circuit boards, wire harnesses and box builds.
• MAC Surgical Pty Ltd., an Australian company that repairs, services, designs, manufactures and modifies surgical instruments and tools, has received ISO 13485:2003 certification. To enhance its compliance with the new standards, the firm recently expanded its services to include laser marking, passivation and wire-cutting.
• Mar-Med Company of Grand Rapids, Mich., has received ISO 13485:2003 certification from the National Standards Authority of Ireland Inc. for its Tourni-Cot product, a device that helps doctors occlude blood vessels during digit surgery.
• ISO 9001:2008 certification has been awarded to National Cable Molding, a Los Angeles, Calif.-based manufacturer of custom molded cable assemblies. The company is a division of National Wire & Cable Corporation of Los Angeles.
• Omega Plastics, a Clinton Township, Mich.-based provider of tooling and injection molding solutions, has received ISO 13485:2003 certification for the manufacture of tools, components and assemblies for injection-molded medical devices.
• ISO 9001:2008 certification has been awarded to Oncology Services International, a Montebello, N.Y.-based radiation therapy device and service firm. Oncology Services International bills itself as the world’s largest provider of refurbished medical linear accelerators and simulators.
• Piezo Resonance Innovations Inc., a Bellefonte, Pa.-based company that specializes in the integration of smart materials technology into medical products, has achieved ISO 13485:2003 and ISO 14971:2007 certification. Piezo’s president said the achievement will enable the firm to manufacture medical devices under its own label.
• Segue Manufacturing Services LLC, a Lowell, Mass.-based contract manufacturer, has achieved ISO 13485:2003 certification. Company executives said the certification reinforces the firm’s commitment to quality and service.