CareFusion, a medical device company, has signed an agreement to acquire Medegen, a provider of clinically differentiated needleless access valves and administration sets that deliver intravenous (IV) medication to patients, for $225m in cash.
Together, the companies have complementary product lines, research and development expertise and proprietary technologies to help hospitals improve the safe delivery of IV medications to patients. There are additional opportunities for revenue synergies through CareFusion’s customer relationships worldwide.
The US Centers for Medicare and Medicaid Services have identified Catheter-related blood stream infections (CRBSI) as a ‘never event’ and no longer provide reimbursement for care related to these cases, which cost an average of $29,000 per patient to treat.
CareFusion is a provider of IV infusion devices with its Alaris system and Guardrails safety software. Medegen markets needle-free IV disposable products under the MaxPlus and MaxGuard brands with patented technology designed to help health care providers reduce CRBSI and prevent catheter occlusions.
David Schlotterbeck, chairman and CEO of CareFusion, said: “Medegen is an ideal strategic fit with CareFusion due to the complementary nature of our infusion product lines, R&D investments, and our focus on products that are backed by clinical evidence and differentiation.
“We look forward to completing the acquisition and welcoming Medegen employees to CareFusion. 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.”
Charles Stroupe, chairman and CEO of Medegen, said: “At Medegen, we have created a rich, innovative technology portfolio and pipeline, backed by clinical studies that demonstrate the value we can bring hospitals in their ongoing efforts to eliminate catheter-related blood stream infections and catheter occlusions.
“As part of CareFusion, we have the opportunity to grow faster by making our technology available to an expanded customer base, with patients around the world benefiting.”
Subject to Hart-Scott-Rodino approval and other customary conditions, the acquisition is expected to close by the CareFusion fiscal 2010 year-end on June 30.